HCB Magazine December 2019

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ON THE RIGHT TRACK LOGISTICS FIRMS FACE UP TO SUSTAINABILITY DEMANDS  UN STARTS WORK ON NEXT RULE CHANGES  LPG TRADE BOOSTS TANKER EARNINGS  WORKERS HAVE A ROLE IN SAFETY

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UP FRONT 01

EDITOR’S LETTER

This is the time of year I like the best. It’s not the impending

‘sustainability’ and the ‘circular economy’ have been on the

over-consumerised glut-fest of Christmas, nor the early nights

lips of almost all speakers (well, outside the US at least).

and a roaring fire that do it for me, though. No, what I look

The European Petrochemical Association (EPCA), during its

forward to is receiving the December issue of HCB back

Annual Meeting, went so far as to consider whether the

from the printers and being able to close the book on

fourth industrial revolution – aka ‘Industry 4.0’ or simply the

another year.

‘digital revolution’ – has a part to play in helping industry to

And it has been quite a year. Not only has it been HCB’s 40th

meet those sustainability goals. For those who want to know

year of continuous publication, but also a year of massive

more – and our report on the EPCA Annual Meeting begins

uncertainty and volatility, both political and economic. Businesses

in this issue on page 7 – the answer is: “the jury is out”.

in industrial sectors all around the world have had to find ways

One of the most important tools if the world is to improve

to meet that volatility head-on, although many executives have

its performance in terms of sustainability will be the drive to

mentioned the financial ‘headwinds’ they have faced as a result

decarbonise human activity. And in a world that is wedded to

of that strategy.

affordable, hydrocarbon-based energy forms (and in my book

This has also been the year when the growing calls for action

that includes biofuels just as much as fossil fuels) that

on climate change and the despoilation of the natural

suggests there are some massive changes in human

environment have become a clamour. The public outcry when it

behaviour just around the corner.

was made clear just how badly the world’s oceans have been

The need to move away from hydrocarbon fuels is, of

– and continue to be – polluted with plastics waste and other

course, a major concern for those who make a living out of

detritus arising from human activity has made it impossible

producing, manufacturing and supplying those fuels; and

for governments and supra-national bodies to stand idly by.

many of those who will be affected are (or should be) HCB

Some attitudes that formerly were widely regarded as being the

readers. We will, therefore, continue to keep an eye on what

reserve of extremist tree-huggers have become mainstream.

is happening in this area and report back, as we have done

The UN and EU have set out deadlines for action and targets for improving the sustainability of economic activity and, with the notable exception of the US, the world seems to be coming

this month, with a number of articles helpfully corralled in the ‘Sustainability’ section.

One thing is clear: ‘business as usual’ is over, and the

round to the idea that we cannot carry on the way we have been

future will be very different - although in what way is

doing ever since the first industrial revolution.

impossible to tell. When it comes to volatility, you ain’t seen

That much has been apparent from nearly all the industry conferences we have attended this year, where ideas such as

nothing yet.

Peter Mackay

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UP FRONT 03

CONTENTS VOLUME 40

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NUMBER 12

UP FRONT Letter from the Editor 30 Years Ago Learning by Training

CHEMICAL LOGISTICS The next chapter EPCA looks to business as unusual Talking to tanks ITCO accepts Nexxiot’s help Decades of development Chemical Express turns 40 Ever onward Intermodal looks to the future Run with the market Thielmann adds tanks, IBC services Frictionless business BASF’s advice on Brexit News bulletin – tanks and logistics SUSTAINABILITY Evergreen ambitions Industry tackles plastics pollution Smart strategies A green look at packaging

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07 14 16 18 20 22 24

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Editor–in–Chief Peter Mackay Email: peter.mackay@hcblive.com Tel: +44 (0) 7769 685 085

Clear the air Promoting the hydrogen supply chain Gas-free terminal Fuelling ADPO from the sun CHEMICAL DISTRIBUTION Weather the storm Brenntag pulls through Focus on pharma Acquisitions strengthen IMCD’s hand News bulletin – chemical distribution INDUSTRIAL PACKAGING Old faithful ISDI explains the steel drum basics Plastics drum manufacturers listing News bulletin – industrial packaging TANKER SHIPPING Gasping for gas LPG trade boom supports freight uptick Alcohol consumption Proman and Stena take on methanol A tern for the better Terntank looks at hybrid power News bulletin – tanker shipping

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COURSES & CONFERENCES Training courses Conference diary

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32 34 36

38 39 39

SAFETY Incident Log What about the workers CSB promotes employee participation

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REGULATIONS A flying start UN starts work on next Orange Book

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BACK PAGE Not otherwise specified

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Campaigns Director Craig Vye Email: craig.vye@hcblive.com Tel: +44 (0) 20 8371 4014

NEXT MONTH Storage terminal markets What’s new in tank container equipment Update on labelling and compliance More from the UN experts

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30 YEARS AGO A LOOK BACK AT DECEMBER 1989

Thirty years ago, HCB celebrated ten years of monthly publication with a bumper issue of 124 pages, boosted by advertisers keen to ride the magazine’s coat tails at the 1989 MariChem show at the RAI Amsterdam that December. In those days, MariChem was still an event for the chemical tanker sector as well as the new-fangled tank container business, so it was a major happening in the dangerous goods calendar.

Even the list of advertisers in the December 1989 issue was a veritable who’s who of the industry, and this was matched by the announcement of the publication of HCB’s first-ever Tank Guide, a 200-page directory of everything relating to tank containers and road tankers. “One of the strongest themes to emerge during ten years of writing the Bulletin is the sheer dynamicism of the tank sector,” said editor Mike Corkhill in his comment piece. “More and more shippers have become aware of the [tank container] concept’s advantages over competitive forms of transport.”

In fact, within the pages of the December 1989 issue, it was not the tank container that took centre stage but more traditional means of moving dangerous goods. Our report on the incoming changes to ADR and RID made no mention of tank containers and the Regulations section led with a report on the recent session of IMO’s Bulk Chemicals Sub-committee, which made some important decisions regarding hazard evaluation during ship loading and unloading and on the use of vapour emission control systems.

HCB’s annual survey of the chemical tanker fleet showed that the ‘big three’ – Stolt-Nielsen, Odfjell Westfal-Larsen and JO Tankers – continued their dominance of the deepsea business and had a

HCB MONTHLY | DECEMBER 2019

successful year, with rising petrochemical production helping bolster vessel demand in a comparatively tight supply position. Some of the leading names in the shortsea business, other than Stolt-Nielsen, may be less familiar to younger readers: Adriatic Tankers, Dorval Shipping, United Chemical Tankers and Gebr Broere were among the larger fleets in those days.

There was a bullish report from the LNG-9 event in Nice, France in October, where Shell’s Malcolm Peebles may have thought he was being over-optimistic in saying that LNG trade volumes should be able to reach 100 mta in the first decade of the 21st century, or “we ought to be ashamed of ourselves”. In fact, by 2012, international seaborne trade in LNG had exceeded 220 mta. Somewhat wider of the mark, although interesting nonetheless given current attempts to improve sustainability in the supply chain, was a Russian project to use LNG as an aircraft fuel.

While some practice flights had taken place, the developers reported, perhaps not surprisingly, that “many problems have still to be resolved”.

In the US, debate continued about the desirability or otherwise of adopting the UN approach to the approval and use of packagings for hazardous materials. The then little-known Conference on Safe Transportation of Hazardous Articles (COSTHA) debated the issue, with Larry Bierlein noting that the US had been trying to move towards ‘performance-oriented packaging’ since 1982. Andy Altemos and Martin Castle provided more detail on the UN’s multimodal system but Bob Ten Eyck was more cautious and Ed Mazzulo acknowledged industry’s reservations. It would be some time more before HM-181 came into effect.

UP FRONT 05

LEARNING BY TRAINING

By Arend van Campen

THE KODAK EFFECT The Kodak Effect is a well-known phenomenon. The erstwhile industry leader in the 1970s started developing technology that later would be used for digital photography. But as it kept its focus on the old analogue technology for too long, it missed the train and dropped out of competition.

We see this effect in our town centres too. Department stores like V&D and Hudson Bay in Holland were too late to compete with online shopping expansion, because they were holding on to an outdated idea and were unable to adapt in time. Ebay, Amazon, AliBaba, Coolblue and BOL lured the shoppers away and told them they can sit on their couch, press ‘pay’ and have their laptops or clothes delivered.

A friend of mine who works in the consumer industry tells me that ‘convenience’ is the magic word. Now, let me consult a dictionary first to find out what ‘convenience’ actually means: I found two definitions: 1. the state of being able to proceed with something without difficulty 2. a public toilet For the sake of the reader I shall only try to explore the first

When you come to think of it, almost all human behaviour and activity is not essentially any different from animal behaviour. The most advanced technologies and craftsmanship bring us, at best, up to the super-chimpanzee level. Actually, the gap between, say, Plato or Nietzsche and the average human is greater than the gap between that chimpanzee and the average human. The realm of the real spirit, the true artist, the saint, the philosopher, is rarely achieved. Why so few?

Why is world history and evolution not stories of progress but rather this endless and futile addition of zeroes? No greater values have developed. Hell, the Greeks 3,000 years ago were just as advanced as we are.

So what are these barriers that keep people from reaching anywhere near their real potential? The answer to that can be found in another question, and that’s this: Which is the most universal human characteristic - fear or laziness?’

And that is what I am observing daily in my job as a trainer. We educate people to use technological, often computerised systems to do tedious tasks for them, but because of ‘convenience’ they don’t learn the basics and may forget how things really work. They may become even more lazy, blaming the system or algorithm, not themselves. But what will

definition. My gut feeling tells me this is about easiness, relaxation, but I can’t help to link it to laziness too, which according to Professor Louis Mackey is one of the fundamental causes for the underdevelopment of mankind. In the movie ‘Waking Life’ he says: “There are two kinds of sufferers in this world: those who suffer from a lack of life and those who suffer from an overabundance of life. I’ve always found myself in the second category.”

be left to create when everything is conveniently provided for? Kodak refused to learn because convenience halts creativity.

This is the latest in a series of articles by Arend van Campen, founder of TankTerminalTraining. More information on the company’s activities can be found at www.tankterminaltraining.com. Those interested in responding personally can contact him directly at arendvc@tankterminaltraining.com.

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CHEMICAL LOGISTICS 07

THE NEXT CHAPTER

partners are having to work in an environment that is more uncertain, unpredictable and volatile than ever before.

CONFERENCE REPORT • EPCA’S 2019 ANNUAL MEETING REVEALED THE EXTENT AND PACE OF CHANGE IN THE EUROPEAN PETROCHEMICAL INDUSTRY AND HOW THE SUPPLY CHAIN IS RESPONDING Like any representative trade body, the European Petrochemical Association (EPCA) has to reflect the changes in the business environment that are affecting its members.

It has to move with the times and help lead its membership through the changes that they face.

So much was obvious early on at this year’s EPCA Annual Meeting, which took place in Berlin this past 6 to 9 October. For a start, the number of smokers congregating outside the

cigarettes on show this year. It was also somewhat hazardous at times, with middleaged men in blue suits whizzing along the pavement on electronic scooters, readily available at points all around the city.

The theme of this year’s EPCA Annual Meeting was officially ‘Writing together the Next Chapter of the European Petrochemical Industry’, but president Marc Schuller, executive vice-president of Arkema France, explained it more succinctly as an opportunity

FACE THE FUTURE In this environment, Schuller said, EPCA’s role has to be to support industry and, therefore, it has to focus on the next chapter, to build on the 2018 Annual Meeting’s discussions of the implications of the move towards a low-carbon future. “Youth is calling for transition,” Schuller said. Industry has to embrace this new pace of change and be ready to meet the extent of the ambition for change.

It is not necessarily a transition to be afraid of; paradigm shifts can open up major opportunities, Schuller said, and the petrochemical industry is well placed to provide the products needed to move towards a sustainable world. His comments were picked up on by the event’s moderator, Karin Helmstaedt, who reminded the audience that it

entrance to the InterContinental Hotel continues to diminish, with more electronic

to explore how the European petrochemical industry is reinventing itself in the new business environment. At the 2018 Annual Meeting, it had been suggested that industry was facing “the end of business as usual”; that has now been confirmed, Schuller said: chemical manufacturers and their logistics

was now 30 years since the fall of the Berlin wall, which was supposed by some to be a marker of the ‘end of history’. And yet, today turbulence is the overriding background. “In turbulent times, Europe needs to focus on its strengths,” she said.

In particular, that means its huge, well educated and highly skilled market. »

 RAPID EXPANSION OF THE ANTWERP PETROCHEMICAL CLUSTER POSES CHALLENGES FOR THE SUPPLY CHAIN

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The EPCA Annual Meeting took place just ahead of the arrival of a new European Commission, which is expected to be tougher on climate change issues than its predecessor.

“Businesses need to look at how they are responding,” Helmstaedt said. “Standing still is not an option.”

MAKING PROGRESS To avoid standing still, it is worth knowing where we stand now so we know when we are making progress. “Economics is the study of progress,” explained Paul Romer, joint recipient of the 2018 Nobel Prize in Economic Sciences and former chief economist at the World Bank, and ‘economics’ can also explain why progress is good to have. He also posited a question to the audience: “What costs are you willing to bear now to provide your grandchildren with the world you want them to have?”

We live in a world of almost infinite possibilities, Romer said, limited only by finite resources. One thing that ‘progress’ can achieve is to make more out of those resources: Romer gave the example of the

switch from the vacuum tube to transistors, which revolutionised the electronics sector and enabled a vast expansion in the availability of products with a much lower impact on energy demand and resource consumption.

On the other hand, one measure of progress is life expectancy; after rising consistently in the developed world, the trend has stalled in recent years. Romer pondered why this should be, moving seamlessly into his main thesis, which is that the ‘market’, left to its own devices, will deliver some outcomes that are deleterious to humanity, society and the environment. It is the nature of industrial corporations that they concentrate on activities that are profitable; some of those will be beneficial to people and the planet, others will not; further, there are unprofitable but beneficial activities that will be overlooked.

“Governments play a role that the market cannot,” Romer said. Markets cannot be relied upon to achieve ‘progress’ and sometimes there is a need for a government that is firm and is willing to say ‘no’ to companies whose profits derive from activities that are harmful. The

world has done this with chlorofluorocarbons (CFCs), which had been identified as the primary culprits behind the growth of the hole in the ozone layer, and the world, via its governments and supra-national organisations, now need to do the same with greenhouse gases (GHGs). There must be an incentive to reduce GHG emissions and, once that is in place a solution will emerge, Romer said.

He was critical of the economic mainstream that emerged in the 1980s, with its mantra that “government is bad”. Getting government out of the way has allowed the market to pursue harmful but profitable activities.

“We’ve lost the capacity to say through our governments: ‘no, you can’t make money doing things that are harmful’,” Romer said, before concluding: “We don’t need less government; it’s in our interest to have our industry tightly regulated.”

WHAT INDUSTRY CAN DO Joining Paul Romer on the stage at the opening session of the 2019 EPCA Annual Meeting was former EPCA president Tom Crotty, director of the Ineos Group, who gave some examples of ways in which his company is using technology to ensure growth in the future. In the short term, there is a pressing need to renew ageing assets, of which there are plenty in Europe. Ineos is taking a lead, investing €3bn in ‘Project One’, which will see construction of a 2 mta olefins plant in Antwerp, using low-cost propane and ethane feedstocks. This is, Crotty said, “the largest investment in the European petrochemical industry in a generation”.

Secondly, the drive towards a circular economy implies development of ways to achieve the chemical recycling of plastics – taking them back to the molecules – as mechanical recycling has its limits. Chemical recycling, on the other hand, has the potential to retrieve 100 per cent of plastics material.

Achieving that potential will take time and the development of an integrated supply chain – where governments will have a crucial role.

 EPCA PRESIDENT MARC SCHULLER: “INDUSTRY MUST ACCEPT THE NEED FOR CHANGE”

HCB MONTHLY | DECEMBER 2019

CHEMICAL LOGISTICS 09

Ineos is examining a range of technologies and has also shown that, in the laboratory, it is possible to turn used yoghurt pots back into virgin polystyrene.

The emerging hydrogen economy is a “real opportunity” for the petrochemical industry, Crotty continued. Ineos currently produces hydrogen as a by-product of some processes and already uses it internally as a fuel; this may help point towards a model for a hydrogen fuel market and Crotty said Ineos is already active in several industrial and transport projects involving hydrogen in the UK, France and Norway.

Patrick Labat, senior executive vice-president, northern Europe, of Veolia confirmed some of Crotty’s points, noting that the European petrochemical industry has been so successful for many decades and has revolutionised the way we live; in the process of doing so, it has also taken plastics everywhere, even to places where there is no means of managing the waste streams. As a result, the petrochemical industry is seen as being the party most responsible for plastics pollution in the world’s oceans. “In fact,” Labat said, “all links in the chain are responsible.”

“THE PETROCHEMICAL INDUSTRY HAS REINVENTED ITSELF BEFORE - AND WILL HAVE TO DO IT AGAIN”

In early 2019 the Alliance to End Plastic Waste (AEPW) was formed, with broad participation on the part of petrochemical producers. Labat showed some examples of projects that have already been set up in south-east Asia to collect and recycle plastic waste and noted that “nobody has the whole solution, but together it’s possible”.

Indeed, the petrochemical industry needs to find more ways to use recyclate, otherwise there is no incentive to recycle plastics waste.

This would also help industry reduce its carbon dioxide emissions, though it will also need to look at energy efficiency and alternative energies if those emissions are to be reduced to an acceptable level, Labat said.

AROUND THE TABLE One innovation at this year’s EPCA Annual Meeting was a ‘Digital Café’ session devoted to digitisation and sustainability in the chemical supply chain. This followed on from work undertaken by Vlerick Business School and EPCA over the previous three years.

Opening the roundtable session, Prof Ann Vereecke, partner at Vlerick Business School, highlighted the fact that climate change »

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protests were happening in Berlin that very day and that ‘sustainability’ represents the next wave of environmental priorities.

Since Vlerick Business School started working with EPCA, a lot of progress has been made and Vereecke said she was “impressed by the speed of change” in terms of the digitisation of the petrochemical supply chain. However, she added, both industry and consumers now expect that the supply chain will be more sustainable. The question for the workshop was: can digitisation enable sustainability?

Would a move from a linear to circular economy present a threat or provide an engine for growth?

Those who attended the Digital Café were invited to break into small groups to discuss the space where technology, sustainability, the circular economy and petrochemical supply chains meet. After reports from table representatives, the preliminary results were collated and presented back to the group by Prof Vereecke.

Sustainable value comes from increasing asset utilisation and from eco-efficiency, and industry is busy working on that, Vereecke said.

However, it has not been easy to find examples of life extension projects or looped materials in the petrochemical sphere. Furthermore, she said, sustainability is becoming a more important driver for digitisation in the supply chain but it is not the biggest.

Indeed, the discussions brought up once more some of the barriers to greater collaboration that have thus far hindered a more rapid uptake of digitised networks within the industry, not least the need for standards and for a willingness for partners within the sector to trust each other with their data. As before, it is clear that pressure for digitisation is coming from the consumer, not from within.

The main focus of the digitisation process is to increase transparency and this can generate both optimisation within the supply chain and eco-efficiency, Vereecke said.

Collaboration is important, she added, noting also that start-ups can offer learnings for industry – but that industry should not sit around and wait for them to emerge.

PEOPLE FOR THE JOB It was clear elsewhere at the EPCA Annual Meeting that sustainability is a consideration that cuts right across business operations.

EPCA’s Talent and Diversity Inclusion Council (TDIC) confirmed that by basing its business session around the topic of sustainability leadership, with Stephen Hahn-Griffiths, chief reputation officer of the Reputation Institute, pointing out that this goes back some 15 or 20 years.

Initially, the idea of ‘sustainability leadership’ concentrated on the environment but soon spread to cover the impact of operations on humanity,

which coalesced into the concept of Corporate Social Responsibility (CSR).

More recently, there has been an attempt to address the balance between business and responsible behaviour, meaning that sustainability leadership is directly tied to the bottom line. And the idea of the ‘triple bottom line’ – people, planet, profits – has given way to ‘purpose’: why does a company exist, and what are its morals?

CSR is now incorporated into the scrutiny given by investors, analysts, media, governments and the public, so cannot be ignored. The petrochemical industry is showing an improvement in its ratings for sustainability leadership, Hahn-Griffiths said, but it still does very badly compared to other industrial sectors. It is therefore time for action. “Be the kind of leader you want to follow,” he advised. “Take the initiative – don’t wait for the CEO to decide!”

Anyone can be a sustainability leader, it doesn’t have to be the CEO, agreed Prof Wayne Visser, holder of the BASF-Port of Antwerp Randstad Chair in Sustainable Transformation at Antwerp Management School (AMS), who reported on a study carried out by AMS and EPCA. Sustainability leaders need certain characteristics, which cannot be taught: they should have intrinsic motivation, display trustworthy behaviour, and show moral courage. They also need some capabilities that can be learned, such as ‘sustainability literacy’, visionary engagement and an ability to communicate openly.

ON THE RIGHT TRACKS Of most interest to HCB readers was probably the business session on supply chain issues, led for the first time by Dirk Verstraeten, director of global logistics procurement at Covestro Deutschland, who took over the chairmanship of the EPCA Supply Chain Programme Committee (SCPC) from Bertschi’s Johan Devos earlier this year. Some might have thought that this session would veer away from sustainability when Verstraten began by saying: “Today the focus is on hardware,” but he went on to explain that the momentum within the supply chain is all about rail.

With containerships getting ever larger – the latest generation can carry around 23,500

HCB MONTHLY | DECEMBER 2019

CHEMICAL LOGISTICS 11

20-foot containers – how can a port such as Antwerp cope with the rising volume of freight passing through its terminals? And there is more to come: Ineos is not the only chemical company to be planning investment in production capacity in Antwerp. In addition, recent problems with water levels on the Rhine have exposed the vulnerability of the German chemical industry to transport disruption in inland waterways.

All this points to a need to move freight onto the rails. “Can EU legislation help in developing rail capacity?” Verstraeten asked. “Let’s rattle the cage!”

First to take up that challenge was Peter Klaus, retired professor at FriedrichAlexander University, who explained that ‘infrastructure’ is not just about physical assets, it’s what frames and channels (and restricts) logistics flows, and what determines the success of logistics businesses. “But it’s outside your control,” Klaus said.

The petrochemical supply chain – or, rather, network – is extremely complex, covering a wide range of consignment size, transport mode, and full- and less-than-truckload movements. This network is very asset-heavy and slow to change, and based on processdriven technology.

KALEIDOSCOPE VIEW The petrochemical supply network is multi-dimensional, Klaus said, not only in terms of its physical and IT infrastructure but also the legal and regulatory framework and ‘soft’ infrastructure – the social and cultural forces the shape the world in which it exists and which allow it to function. It is, though, facing some severe challenges, congestion on the roads and rails and in terminals, “enormous” compliance demands, and the need to reduce fuel consumption and emissions. In the future, the picture will be complicated by selected public investment and by developments in technology, such as autonomous vehicles, platooning, smart roads and so on.

 THE EPCA ANNUAL MEETING OFFERS A PLACE FOR THE WORLD’S PETROCHEMICAL INDUSTRY TO GET TOGETHER

However, there is currently an enormous backlog in maintenance across the transport networks, which will soak up a lot of the investment coming into the sector, and it will take time to make these changes. Europe faces constraints in terms of the availability of land for expansion of the network and is also beset by some over-optimistic expectations.

Help may be at hand, though: growth in transport demand in Europe is levelling off and, in terms of capacity growth, bottlenecks are being removed. There is, Klaus said, also a high level of awareness of the ability of digitisation to make a difference, along with growing political support for the transport sector.

Take-up of digitised solutions is being held back by a lack of standards, the risk of cyberthreats, a global shortage of the necessary talent, and a brake from the culture of the petrochemical industry: the petrochemical logistics sector works on long time scales and its people have been trained to think within the established framework.

Klaus concluded with what he called some “obvious” messages: businesses need to take a 360-degree view to see what’s coming at them; don’t try to control everything – decentralise and devolve operations and

Vandermeiren, CEO of the Port of Antwerp, was on hand to report on current and future developments. The port is looking to double the proportion of freight moving by rail by 2030; the question is: how? It should be achievable, he said; currently only some 7 per cent of freight moving through the port goes by rail, compared to as much as 40 per cent in Hamburg, which suggests there is room for growth and plenty of opportunity for rail operators.

To achieve a modal shift, though, the port must move from being a passive landlord to being an active community builder. A lot of ideas have already been thrown into the ring and some of them – hydrogen-powered tugs, a coalition on carbon capture and sequestration/ use, for instance – have already been given the go-ahead. But Vandermeiren is aware that concrete solutions need to emerge urgently if the port is to hold onto its licence to operate.

Any talk about rail transport in Europe inevitably turns towards intermodal transport and Bernhard Kunz, managing director of the Hupac Group, was well position to inform the discussion. Hupac was founded in 1967 and is now moving nearly one million road transports onto the rails every year. Kunz agreed that maintenance has suffered over many years,

decision-making; and resilience will depend both on investment in hardware and a willingness to adopt a new mindset.

but the work that is now being done is not being coordinated across Europe, leading to local capacity problems. As with road transport, the rail sector is also facing a driver shortage. The Rastatt closure in 2017 highlighted the problems of accessing a Europe-wide solution when drivers cannot »

PORT TO RAIL As Antwerp had been mentioned several times already, it was fortuitous that Jacques

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easily work in other countries, and the fact that the vital rail corridor from Antwerp to Basel relies on just two tracks.

Kunz said there is a need for a single European rail area with full interoperability, more investment in infrastructure, and a reasonable solution to the problem of coping with both passenger and freight rail demand.

“All stakeholders need to have input,” he said.

MOVING RAIL FORWARD Also appearing on the stage during the supply chain session was Clemens Först, spokesman of the board of Rail Cargo Group, who began by saying that consistently moving 75 per cent of freight by road is not sustainable. “Rail is the only way to combine economic growth and climate goals,” he said. “We are now at a pivotal point – political will is building.”

Först spoke about the Railfreight Forward Initiative, instigated in 2018 by a group of rail operators across Europe to provide a common voice. It is aiming to increase the share of freight moving by rail to 30 per cent by 2030 – Austria and Switzerland are already at this level so it is up to the rest of Europe to catch

HCB MONTHLY | DECEMBER 2019

up. One way to do this is to provide a level playing field in terms of cost: trucking puts a hidden cost on society in terms of emissions, congestion and road casualties, which is absent in the rail sector but is not reflected in the comparative price of moving goods by each mode; countries should provide subsidies to railfreight in order to reflect this, he said.

Först also echoed Kunz’s comments about interoperability: driving a train across Europe should be as easy as driving a car, he said – but it is not, and often for political reasons.

Rastatt threw a spotlight on those issues, as well as on the lack of resilience. A lobby for the railfreight sector in Europe has long been missing, he added; this has been reflected in the lack of investment – “there are no votes in rail,” he said.

During the panel discussion following the presentations, Kunz said that things are changing, and a lot of investment is in the pipeline. However, the main corridors remain vulnerable and political considerations continue to block some developments.

Rail is also failing to take advantage of digitisation, it was agreed. Rail operators fail

to provide enough information to their customers, and Jacques Vandermeiren said that more visibility would improve asset utilisation. That applies also to infrastructure operators: he added that the Port of Antwerp cannot get decent rail traffic information from Infrabel, the Belgian infrastructure owner.

“We don’t have a clue how many trains come in and out of the port,” he said. “This has to change, and as soon as possible.” Kunz agreed: “We get plenty of data from our customers and rail operators but nothing from infrastructure operators.”

Rail infrastructure is widely seen as a matter of strategic national importance, so it is perhaps not surprising that infrastructure owners remain largely under state control and are by definition state monopolies, with all the implications that has for inefficiency. However, there seemed to be no appetite for liberalisation or privatisation in the sector. Rather, a coordinated approach at EU level is seen as an urgent need.

Summing up the panel discussion, Verstraeten asked: “We are connecting Europe to Shanghai, why not Antwerp to France?” It is

CHEMICAL LOGISTICS 13

a question of legislation, he felt, and urged industry to join forces and make a noise in Brussels. “Let’s make things happen in 12 months, not 12 years,” he said.

Speaking to the press after the session, Kunz questioned the assertion that there are no votes in rail, noting that youth are the voters of tomorrow and they are the people who care that rail reduces carbon dioxide emissions by 90 per cent. Furthermore, people sitting in traffic jams see plenty of freight vehicles around them and might start wondering why that freight doesn’t move by rail instead – and people sitting in traffic jams are also voters.

On the question of infrastructure, Kunz said that corridor managers have to be empowered as, at the moment, they are at the behest of infrastructure owners. In addition, there needs to be a means of guaranteeing slots for freight on the rails; who will invest in rolling stock if there is no guarantee of service?

OUTLOOK FOR TRADE EPCA’s Annual Meeting always closes with a lunch, wrapped around presentations to the winners of the European Youth Debating Competition and a speech by a high-profile speaker. This year that speaker was Pascal Lamy, former director-general of the World Trade Organisation (WTO) and former EU Trade Commissioner, and now chair of the Paris Peace Forum. Given the recent revival in the use of trade and tariff wars, this was a highly appropriate move by EPCA. Lamy attempted to give his audience an understanding of the medium- and long-term factors shaping the industry. Some of these are clear, he said: demographic changes are increasing the proportion of the elderly in the population, while there is a huge expansion of the middle classes, especially in Asia, which is adding immensely to consumer demand; new technologies are emerging quickly, notably digitisation, AI and biotechnology; there is a new “political wave” in terms of ecology and a focus on plastics pollution; and the beginnings of the transition to renewable energies, with

 CLEMENS FÖRST (OPPOSITE): DRIVING A TRAIN ACROSS EUROPE SHOULD BE AS EASY AS DRIVING A CAR

“WE ARE CONNECTING EUROPE TO SHANGHAI

BY RAIL; WHY NOT ANTWERP TO FRANCE?”

will be too high, he said, and there is no political pressure for it to happen – the same is true in the food, automotive and consumer goods sectors.

Lamy then moved on to look at the implications of the new European Commission, which he predicted will be ‘greener’ than its predecessor and will also take a stronger stand on sovereignty issues in areas such as defence and trade. There will be increasing regulatory pressure, some of which will affect the petrochemicals sector, and a likely rise in carbon prices.

Carbon price adjustments at borders are good in part, he said, but will increase the price of imports. More promisingly, there should be more investment in research and innovation under the new Commission.

a likely impact on raw material prices.

What is less clear is the pace of global economic growth, which looks like being slower in Europe (around 1.5 per cent a year) than in the world at large (around 3.5 per cent) – and that assumes no repeat of the 2007/08 “surprise”. Lamy noted the recent rise in populism, nationalism and authoritarianism but said this should remain contained, noting that there has already been a reaction – although China will remain the big exception. Speaking of that, he saw no hope of a rapprochement between the US and China, which is likely to affect the US hegemony more than it hurts China – so brace for some turbulence!

That disconnection between the US and China will be particularly apparent in the technology sector, Lamy predicted, not least due to concerns about security vulnerabilities. This is not all doom and gloom, though, and could generate opportunities for tech companies in Europe and elsewhere in the world.

The potential for serious deglobalisation is less clear, but there are already signs of a move away from broad integration. Existing business patterns are set up to work with

COMING SOON In the short term, Lamy said, the EU will have to decide the nature of its relationship with the US and China; will the three systems converge or diverge? And in the very short term the impact of Brexit is still unknown. Lamy likened it to “a big vehicle moving very fast with no driver” and said that, if and when it takes place, the big question will be the nature of the future trade and economic relationship between the EU and UK. In the end, he predicted, there will be no difference – there will be no tariffs, though any regulatory divergence could cause problems. It would be “politically stupid” to do that though – a comment that was little succour to the Brits in the audience who have become used to political stupidity over the past three years – and would be costly. In his opinion it will be “BINO” – Brexit In Name Only.

Wrapping up proceedings, Marc Schuller said his main takeaway from the 2019 Annual Meeting is that paradigm change, especially in terms of sustainability, reminds us that nothing lasts forever and that ‘business as usual’ is no longer the answer. “Industry has reinvented itself before,” he said, “we must do it again.”

price and demand differentials, and globalisation is efficient – although it causes pain for some. The process of deglobalisation will be inefficient and will also cause pain and bring costs – Lamy mentioned Brexit as a prime example. However, the cost of disentanglement in the petrochemical sector

The final flourish, as always, was to announce the venue for the 2020 EPCA Annual Meeting which, to no great surprise, will be Budapest.

The event will take place from 4 to 7 October and the main hotels in Pest are already booking up. More details will made available on the EPCA website, https://epca.eu.

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CHEMICAL LOGISTICS

TALKING TO TANKS DIGITISATION • ITCO HAS DECIDED THE TIME IS RIGHT TO DEVELOP STANDARDS FOR DATA COMMUNICATION IN THE TANK CONTAINER AREA AND HAS ENLISTED HELP FROM NEXXIOT AT ITS LAST members meeting in Amsterdam in early October, the International Tank Container Organisation (ITCO) decided to establish a dedicated work group to look at standards for data communication and telematics.

“Standardisation is an evolving practice with inbuilt adjustment mechanisms,” says Patrick Hicks, ITCO’s general secretary.

“ITCO involves as many stakeholder groups as possible, to enable a discussion comprising all the important technological and commercial concerns.”

As part of the move, ITCO has accepted a request from Nexxiot to join the Organisation.

Nexxiot will, it says, be able to play a central role within ITCO in the development of international standards for the tank container industry. “Nexxiot’s contribution to ITCO’s work, as an expert in digitalisation of the freight market, will contribute to work that the organisation is undertaking and proved benefits to our members,” Hicks says.

STANDARDISE FOR EFFICIENCY “Standardisation is a key for a highly efficient digitised supply chain,” says Tim Thiemnn, Nexxiot’s segment head, tank containers.

“Particularly in the area of IoT, there must be agreed upon standards to ensure that quality, safety and sustainability in the tank container industry are maintained in the future. Nexxiot works with the most advanced solutions for the supply chain and we have extensive

 NEXXIOT ALREADY HAS PLENTY OF EXPERIENCE IN DIGITISATION IN THE INTERMODAL SECTOR

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experience in digitising large fleets of cargo assets. That is why we want to use our know-how to support the goals of ITCO.” New standards will reduce conflicts among the various technology providers, as open and inclusive standards ensure the market is not flooded with inappropriate IoT technology.

Agreed standardisation processes will guarantee that business cases are supported and operability issues are covered.

“The global supply chain stakeholders require interoperability, which means inclusive standards for both hardware and software, open protocols for communication platforms and business processes,” explains Marianna Levtov, commercial project manager at Nexxiot. “Interoperability standards will increase supply chain efficiency and enrich

the market with better suited products which do not compromise on quality.”

For the tank container sector, the value of standardisation is particularly important in the field of cargo quality. The ability of ITCO’s members to handle sensitive cargo appropriately will strengthen their position within the market, Nexxiot reasons. “Great value is extracted from gaining a strong mutual understanding of the requirements and challenges and can help to define an industry-wide vision which forms the basis of any consortium of interests and subsequent ongoing negotiations,” the company says.

Nexxiot creates transparency along the supply chain and enables customers to differentiate their own business models and optimise their existing process. When attached to transport assets, Nexxiot’s IoT sensors generate data on such factors as location, temperature, shock and more. This data is then analysed by Nexxiot’s algorithms and provided via a cloud platform directly to the customer in near-real time. As a leading enabler of the digitised supply chain, the company is adept at taking care of the requirements and needs of all parties in the supply chain and will leverage that experience to help ITCO’s members. www.nexxiot.com international-tank-container.org

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DECADES OF DEVELOPMENT PROFILE • CHEMICAL EXPRESS CELEBRATED ITS 40TH ANNIVERSARY THIS YEAR; HOW DID IT GET TO WHERE IT IS NOW AND WHAT DOES THE FUTURE HOLD FOR AN INTERMODAL OPERATOR IN THE DIGITAL AGE? This month marks the end of a year of celebration for Italian chemical logistics specialist Chemical Express, as it reached the grand age of 40. Chemical Express’s account manager Francesco Mattozzi spoke to HCB about the last four decades, examining where the company started and where it is heading.

“The founder of the company was Salvatore Romano,” explains Mattozzi. “In 1979, when the company was established, it was a pioneering time with a completely different market, customers having different needs and – for sure – fewer requirements than now.”

Fortunately for Romano, this was a period where Mobil Chimica Napoli was growing and in need of truck drivers. “He decided to invest in this particular business sector, being himself a truck driver and, most of all, because this was the maximum expansion period for Mobil Chimica Napoli refinery.

Also, the market demand was still able to absorb new operators acting in chemical tanker transportation.”

Chemical Express started out with just a few trucks, with fleet numbers increasing as Romano and Mobil developed their cooperation.

In the coming years, Mobil would be Chemical Express’s main customer in a period where transport activity was exclusively arranged by road and limited to domestic traffic.

CHANGING CIRCUMSTANCES At the advent of the 1990s, Chemical Express found itself in unfamiliar waters and a difficult period of transition began. “Mobil Chimica closed the refinery in Napoli and suddenly we found ourselves in the space of a few months without our most important customer,” says Mattozzi. “It was a very

HCB MONTHLY | DECEMBER 2019

dramatic situation that could have stopped our activity; hence, it was necessary to roll up our sleeves and start to look for new customers in the market.”

Fortunately, there was some young blood in the organisation that was able to work with these developments and embrace the changes. “It was the most troubled and complicated period of the company’s life, but thanks to the entry of the second generation inside the company, Salvatore’s sons, it was possible to restart activity.

“The new ideas and foresight brought by the new generation, particularly Vincenzo, led to the first tank container being bought. This event opened new horizons to the company and projected it towards completely new markets and customers,” says Mattozzi.

From here, Chemical Express started transporting goods in Europe. Although there were already many operators in the sector, growing demand from customers and the free circulation of goods in Europe allowed new carriers to find their own space within the market.

Mattozzi continues: “Some customers were already very interested to the intermodal solution and assisted its development, while others – and this still happens – looked at it suspiciously or just didn’t want to hear about it.

Furthermore, laws across different countries, thanks to the EU, started the harmonisation

adds. Chemical Express found itself with customers paying more attention to product quality and traceability, meaning the company needed to adapt further.

“The growing demands for greater quality and traceability of previous transport led the company to draw up a list for the products previously transported and to have standard procedures for all cleaning stations (EFCTO rules). Even the increasingly urgent requests to carry out operations in a safe manner led to an increase in awareness of potentially dangerous situations and ensuring that all personnel are appropriately trained and equipped. Just changing mentality and understanding what the customers’ requirements were made it possible to work with international companies, teaching us to be a part of the market.”

Chemical Express rose above the issues of the 1990s and has seen an increase in the number of customers since 2000. This has led to a growth in fleet size and the company’s workforce. More recently, in 2013, Chemical Express underwent a corporate restructuring, along with a new design concept, to make business more efficient and closer to customer requirements.

THE DIGITAL AGE One of the biggest differences between the 20th and 21st centuries is the onset of digitisation.

Computer technologies and the digital revolution have impacted many facets of chemical logistics for businesses and Chemical Express has been continuously adapting its activities to embrace new digital features, particularly in recent years.

“For some years now, the digitisation process of the industry has been increasingly pushed, and this request is now always more frequent from customers,” says Mattozzi. “This arises from the need of the customer to be updated in real time about their shipments’ status and to exchange information or transport orders automatically.”

process (including ADR rules). Even though this process is still in progress, it allowed our transport company to move into new markets.”

Chemical Express began the digitisation process some years ago, renewing its computer

WHAT THE CUSTOMER WANTS It was around this time that “there was a big change in customer requirements”, Mattozzi

 DIGITISATION IS HELPING CHEMICAL EXPRESS TO UTILISE ITS INTERMODAL ASSETS MORE EFFICIENTLY

CHEMICAL LOGISTICS 17

system and integrating it with the tractors’ satellite control software (Transics) in order to obtain vehicle geolocation and information on driver hours and driving style, fuel consumption, and to communicate real-time date on the receipt of unloading papers and other items.

Mattozzi continues: “Many customers are asking to us to download transport orders or update the delivery status of their orders, putting the related info into some web platforms (such as Transporeon, AX4, TMS, Transwide, OTM, Elemica, Citrix). The next goal for our company will be to increase the electronic data exchange connections with our customers, as we are already doing with our suppliers. For example, we receive updated information concerning railway transport of our units directly to our computer system thanks to the connections with the Cesar online web platform used by many railway operators or with Grimaldi, with which we arrange more than 10,000 deliveries on yearly basis.”

Another near-term project for Chemical Express is to equip its tank container fleet with telematics systems covering location, temperature, filling levels, pressure and other metrics. This will enable the company to improve transparency in customer

service, sharing all the necessary information regarding shipments.

“Moreover, we will intently follow developments about blockchain technologies and the Internet of Things,” says Mattozzi.

“We are increasingly confident that technology will revolutionise the entire transport system and, being among the first to start with this process, it will allow us to offer to our customers what they expect.”

SELF-REFLECTION “Looking back over the years, we have seen our company completely transformed from a small company to a consolidated player that offers transport service to a wide range of European customers,” explains Mattozzi. “Flexibility, inventiveness and the ability to keep up with the times allows us to compete with operators that can boast bigger dimensions and history than us.”

Over the next five years, Chemical Express will focus on the development of sustainable transport and expanding its fleet, with support from the ALIS (Logistic Association of Sustainable Intermodality), of which it is a founding member. Since its creation, ALIS has become the main interlocutor between institutions and infrastructure companies

to obtain the best conditions for logistics operators to offer an intermodal service tailored to their customers’ requests.

“Additionally,” says Mattozzi, “we will follow our strategy to bring young people closer to the work of logistics, both for drivers and employees. This will be done through training courses for recruitment, which we have been doing for some years, encouraging youth employment and attracting talents of experienced workers to our staff.”

Asked to predict the next 40 years, Mattozzi says: “It is hard to imagine what will happen during the next 40 years because it is a horizon too far away. Surely, technology and digitisation will play an increasingly important role in transport and, perhaps, autonomous driving trucks will solve the problem of a lack of drivers! Jokes aside, we hope that our company will continue to develop and remain as one of the market leaders in this industry.

We also imagine a future that makes everyone more aware of the need to reduce pollution and respect the environment. Hopefully, the majority of the transport will be by train and sea, reducing the number of trucks on the roads, which simultaneously reduces risks, especially for dangerous goods.” www.chemicalexpress.it

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EVER ONWARD EVENT REPORT • THIS YEAR’S INTERMODAL EUROPE EXHIBITION IN HAMBURG HAD PLENTY TO SAY ON THE DEVELOPMENT AND IMPLEMENTATION OF DIGITISED SOLUTIONS AND THEIR EFFECT ON OPERATIONS THE HAMBURG MESSE was buzzing with opportunities this past 5 to 7 November as representatives from all sectors of the industry mingled at the Intermodal Europe show to discover new partners, catch up with old faces and come away with some newfound information.

Attendees were treated to plenty of new products on the exhibition stands, ranging from the latest technical developments in tank container units to cryogenic valves, but the main discussion points revolved around digital solutions. Digitisation is revolutionising the industry and the number of solutions and

platforms associated with it have provided new possibilities for businesses. Transparency and visibility are now available at a level never before experienced and the ease of trading on dedicated online platforms has changed how the very fundamentals of chemical trades are carried out.

OPTIMISED COLLABORATIONS Set to the side of the hall, the conference areas were awash with attendees hoping to get a stronger understanding of new concepts, seek solutions for industry-wide issues and perhaps find a new business opportunity. Over at the

Innovation Theatre, the discussion around container optimisation and platform collaboration kicked off with Boxxport founder and CEO Jan Frahnert delving into how marketplace providers such as Boxxport can provide benefits around the world. The aim of Boxxport is to enable its users – from local retailers to global players – to make trading faster, more efficient and fully transparent.

Frahnert explained that there are four major benefits of the platform for users: market transparency, speed of use, convenience and low transaction costs. These are of course big benefits for both buyers and sellers, which is why Boxxport’s list of users is growing rapidly.

Those looking to sell on the platform can trade on a whole new level of business thanks to real-time information and relevant insights, allowing for instant reactions to any market trends or movement. Boxxport buyers can scale up from local to global in seconds on the platform, while also being able to digitally manage an entire fleet with the cloud-based business solution and utilise the real-time insights.

SOURCES OF INFORMATION Christian Roeloffs, managing director at Container xChange, focused on the mitigation of risk and why trading in a global market is an inherently risky business. Roeloffs looked at what steps are currently being taken to reduce risks in the industry, such as: relying on anecdotal evidence from an existing network, the press, search engines, ‘gut feeling’, personal meetings, using reports on bank guarantees and credit assessments, and spending time and resources on ‘watertight, triple checked’ contracts and expensive lawyers.

But the limitations of these processes are clear to see: they do not take place in real time, they can frequently be expensive, scalability is almost non-existent, and they can be frequently prone to errors. Furthermore, these issues can be intensified by business complexity, the growth and expansion of networks and the onset of total global connection. The question posed by Roeloffs was: “Surely, in today’s ‘digital age’, there must be a better way?”

Container xChange has been designed to include performance overviews of users – a form of rating system – where previous users

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CHEMICAL LOGISTICS 19

can leave comments for those considering working with a provider. These comments cover everything from the swiftness of replies to the upkeep of data.

This high-level vetting and peer-to-peer partner reviews enable others to make the most informed decisions possible before committing to a new business relationship.

CUT OUT THE WASTE Matchlog’s CEO and founder, Dhruv Taneja, took the stage to explore the concept of a zero-waste cargo network. Focusing on ports in India as case studies, Taneja walked the crowd through several scenarios where the levels of empty journeys taking place are, simply, unacceptable to industry. Taneja examined incidents where vessels with 30 per cent empty space were still making journeys - a costly and environmentally damaging practice.

To combat this, Matchlog’s platform provides shippers and logistics companies with the chance to ensure that every cargo, equipment and mode of transport – container, body truck, trailer, rail, vessel – on the platform is running fully laden at all times. This is done by harnessing network-connected transport routes, machine learning and an understanding of patterns and flows for cargo and containers through ports to pair items and generate the most feasible and optimised system for the supply chain. Currently, there have been more than 3.2 million pairings on the platform to improve logistics based on cargo size, nature and routings.

WAKEY WAKEY To round out the optimisation and collaboration talks was Wakeo’s founder and CEO, Julien Cote, who explained how, although digitisation has provided a hefty amount of data and historical information for shippers to use, it is often “fragmented and heterogeneous as it comes from a multiplicity of forwarders and

 EACH NOVEMBER, INTERMODAL EUROPE OFFERS A SHOWGROUND FOR PRODUCT AND SERVICE SUPPLIERS IN THE CONTAINERISED CARGO SPHERE, WITH PLENTY OF TIME TO CHAT AND DISCUSS EMERGING TRENDS

carriers’ proprietary systems”. Wakeo provides software-as-a-solution (Saas) to bring real-time tracking on international transport flows, whether they are on land, sea or in the air. The Saas developed by Wakeo turns a historically reactive market into a predictive one as tracking, alerting and analytics are all heightened through the software.

However, an obstacle being faced due to the massive boom in digital software means that there are now competing systems such as ERP, TMS and WMS; connectivity issues are the last thing needed when purchasing a software to improve connectivity in the chain.

Fortunately, Wakeo is compatible with all systems and can be custom-designed to ensure it interacts smoothly with existing systems being used by a specific business.

There was a very high level of engagement between all presenters and the audience, often with some questions bouncing between the members on the stage and about their own platforms would be affected.

The presentations during the session prompted a lengthy and in-depth question-andanswer period that had to be cut short due to a lack of time. The audience was interested to hear more about the use of different currencies on platforms aimed at global audiences, and details about specific security procedures.

and now we have to increase the size of our stand to accommodate everyone.”

Intermodal Europe 2020 will take place between 6 and 8 October at the Rotterdam Ahoy Centre. Full details and booking information can be found on the event website. www.intermodal-events.com

BACK TO ROTTERDAM Exhibitors reported themselves happy with the 2019 Intermodal Europe and many were looking at rebooking for 2020 and arranging future meetings with attendees that will also be coming back. “It’s always nice to see so many familiar faces and to see how the reaction of people we talk to changes over time,” says Florian Frese, marketing and communications at Container xChange.

“The first time we attended Intermodal in 2015, it was so hard to attract people to our stand

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RUN WITH THE MARKET PRODUCT DEVELOPMENT • THE LAST FEW MONTHS HAVE BEEN BUSY FOR THIELMANN, WITH A NUMBER OF NEW PRODUCTS AND SERVICES INTRODUCED

preservatives and glacial acetic acid used for peeling processed fruit. Caustic soda (sodium hydroxide) and caustic potash (potassium hydroxide), along with acids used in many industrial processes, and dairy sanitisers are also compatible with the T14 tanks.

THIELMANN HAS LAUNCHED a new line of portable tanks designed for the safe storage and transport of hazardous goods under pressure. Developed to meet the needs of end users operating in a variety of industries, namely the chemical, oil and gas, and paints and coatings sectors, the portable tanks meet international regulations for the transport by road, rail and sea of dangerous goods that demand a safe and secure environment under pressure.

Designed for the transport of dangerous goods of Classes 3, 4.3, 6.1 and 8 by road, rail and sea, the tanks comply with the requirements of the IMDG Code, RID/ADR, CFR49, Customs Convention-TIR and ISO standards. The full vacuum tanks have a base frame constructed of carbon steel, with four lifting lugs and optional ladder and walkway accessories, and have a maximum allowable working pressure of 4 bar.

In additional to enamel paints, car lacquers,

HIGH-PRESSURE TANKS The T22 tanks, also available in volumes of 450 to 2,500 litres, are made of the same highquality stainless steel but are manufactured with a 10 mm shell thickness. They meet international transport codes, including the IMDG Code, ADR, US DOT CFR49, Customs Convention-TIR and ISO standards, for the transport of dangerous goods of Classes 4.2, 5.1, 6.1 and 8 by road, rail and sea.

The tanks have a similar design structure to the T14, and a maximum allowable working pressure of 10 bar. This makes them suitable for the storage and transport of substances susceptible to spontaneous combustion, such as copra, yellow or white phosphorous

The new tanks are currently available in two versions: a T14 tank for chemical products with 6 bar test pressure; and a T22 tank with a test pressure of 15 bar. The T14 tanks are made of high-quality stainless steel (316L or 316Ti) with 6 mm shell thickness and are available in a range of volumes from 450 to 2,500 litres.

most varnishes, kerosene, methylated spirits and methanol, the tanks can be used to store and transport polyester resin kits, two-pot polyurethanes and their solvents, substances used to produce acetylene gas, some pesticides, sodium cyanide, metal degreasers, copper chrome arsenate mixtures for timber

and unstabilised fishmeal; certain fertilisers such as ammonium nitrate; oxidising agents, including swimming pool treatments (calcium hypochlorite, hydrogen peroxide); and toxic products such as sodium cyanide used for metal treatment; agricultural insecticides; and chromium salts for electroplating processes.

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CHEMICAL LOGISTICS

Other products include copper chrome arsenate mixtures for timber preservatives, potassium hydroxide, sodium hydroxide, dairy sanitisers and industrial cleaners, and industrial acids including sulphuric, nitric and hydrochloric.

“We saw a requirement for portable tanks that meet international transport regulations for the transport of hazardous goods across road, rail and sea networks, which is why we decided to develop the T14 and T22 tanks,” Sebastian Bojarski, Tank Containers Product Line Director says. “As with all THIELMANN solutions, these tanks are second to none in quality, and their aseptic nature means they are simple to clean and can go on storing and transporting goods for many, many years.

“Most importantly, we wanted to design something that fits within the existing processes of customers in the chemical, oil and gas, and paints and coatings industries, without requiring excess specialist support or handling equipment – which is exactly what we have done with our new range of portable tanks.”

IBC ACTION Always looking to increase support for its customers, THIELMANN has also introduced a new option for the safe bulk storage and transport of intermediate bulk containers (IBCs). Designed for use with transportregulated chemicals used in oil and gas drilling operations, the DNV-certified frame can carry up to three standard IBCs per frame, providing transport for between 1,000 and 1,500 litres. Also with UN/ADR approval, the frame is suitable for offshore containers and is manufactured from stainless steel, making it resistant to the corrosive effects of operations in the maritime environment.

Design features include a keyed hose connection, which safely prevents the accidental mixing of different chemicals,

and a special coating for the DNV frame that increases saltwater resistance. As the frame is stackable, the system is also suitable for operations where space is constrained. The system can also be fully customised in order to meet specific requirements.

Also on the topic of IBCs, THIELMANN announced in August that it would be extending its offerings to include IBC rentals for the first time. With options including renting, rent-to-own and leasing, the new offering has been set up to assist customers with a range of requirements, whatever their purchasing power, allowing them to become more agile in an ever-changing marketplace.

KEEPING PACE The rental option rounds out THIELMANN’s existing IBC services, which also include repairs, maintenance, spare parts, cleaning, consulting, periodical testing and inspection (covering both regulatory and non-regulatory requirements), as well as logistics services.

Ralf vom Bruch, Industrial Containers Product Line Director says the move to IBC rentals will primarily target users looking to transport foodstuffs, chemicals and cosmetic products, with the potential to expand into additional types of containers in the future in response to market demand.

“We built up a large stock fleet of containers

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in preparation for the official launch of the offering, in line with our strategy to react to the increased demand for one-stop-shop solutions from the market,” he says. “We are now able to offer all options to our customers, from buying and leasing to rent-to-own and renting.”

This is just one example of THIELMANN’s refusal to stand still in a market in which it already excels. As competition heats up in the container and IBC markets it is clear that THIELMANN is dedicated to its customers and will continue to strive to meet their requirements, no matter how niche.

“We are always looking to see how we can expand our offerings and better help our partners achieve their business goals,” vom Bruch said. “Often this happens by way of one-off engineering projects in which we work closely with the customer to meet a specific requirement, and the resulting product can then be added to our product portfolio – as was the case recently when our engineers were challenged to design and develop a containment system for pyrophoric substances. There were no suitable solutions in the marketplace, so we got to work and developed a tailor-made system.

“Being able to work with our customers in this way is a great way to tap into new areas of development and discover new ways to grow.” www.thielmann.com

 THIELMANN HAS BEEN EXTENDING ITS RANGE OF CONTAINERS AND SERVICES FOR THE CHEMICAL AND ALLIED INDUSTRIES, INCLUDING A NEW FRAME FOR IBCS IN OIL AND GAS SERVICE AND IBC RENTAL SERVICES

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FRICTIONLESS BUSINESS BREXIT • THE NUMBER OF BUSINESSES THAT HAVE LITTLE IN THE WAY OF BREXIT PREPARATIONS IS UNSETTLING. ADDRESSING THESE FIVE TIPS WILL MINIMISE ANY IMPACTS THAT MAY ARISE GETTING READY FOR business dealings in a post-Brexit world might be best summed up in the phrase “fail to prepare; prepare to fail”.

This has been the mantra adopted by many businesses and third-party logistics providers (3PL) inside and outside the UK as normality is sought for trade in a scenario where uncertainty has been routine for the last three years.

There is no doubt that important changes will come in to effect but, as the exact details of these remain largely unknown, it is essential that businesses dealing with

the UK can take proactive steps to mitigate any form of delay or disruption that may occur.

In preparation for the UK’s departure from the EU, BASF has been working with its clients since “immediately after the referendum”. BASF’s UK and Ireland managing director, Richard Carter, explains: “To support our work, we have run a series of workshops with our customers. We are planning and preparing everything we can with our contacts and partners to ensure

we’re ready to deal with any uncertainty caused by what Brexit may or may not bring.

“The starting point for us is to ensure we do everything we can to identify scenarios, prioritise the issues and mitigate any negative effects. Stock levels, early delivery, transport routes, shutdowns, are some of the options for our value chains.”

In light of this, five action points have been recommended by BASF for chemical companies to implement to help ease the transition that may be faced with Brexit.

READY, SET, TRADE Firstly, make sure tariffs for the business in question have been checked. In the event of a ‘no deal’ Brexit, the UK government will introduce a temporary tariff regime on imports. It is predicted that 87 per cent of total imports to the UK will be unaffected by this and eligible for tariff-free access, but it is imperative businesses check these details prior to transit.

Secondly, businesses need to prepare for new customs and VAT procedures at the border when trading with the EU. These preparations and changes need to be made as soon as possible. An Economic Operators Registration and Identification (EORI) number is needed for all businesses exporting from the UK into the EU, whereas businesses that import into the UK from the EU have the option of applying with transitional simplified procedures (TSP). TSP aims to streamline the process and is comparatively simple for those who may be new to customs procedures.

Thirdly, in the scenario that the UK leaves without a deal, current participants in the EU Emissions Trading Scheme (EU ETS) will no longer take part in the system. Participants should continue to comply with regulations due to monitoring, reporting and verifications that may be required, but EU ETS allowances will no longer need to be surrendered from January 2019.

Fourthly, ensuring compliance with obligations under the Registration, Evaluation, Authorisation and Restriction of Chemicals Regulation (REACH) will need to be checked for all businesses seeking to continue manufacturing, selling, using or importing chemicals. This is also true for

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CHEMICAL LOGISTICS 23

 RICHARD CARTER: WE ARE PLANNING AND PREPARING EVERYTHING WE CAN TO ENSURE WE’RE READY

39 YEARS 1980-2019

any requirements under Biocidal Products Regulation (BPR) and Classification, Labelling and Packaging (CLP) Regulation.

Finally, employers should help any EU, European Economic Area (EEA) or Swiss staff to receive any information needed to apply for status under the EU Settlement Scheme.

Applicants for the scheme will be able to secure their rights in the UK. Applications are open until 31 December 2020.

Despite the uncertainty surrounding Brexit when it comes to the minutiae of regulations, progress can be made and planning for flexibility is the key; there is still time to make a change. It is also highly recommended that businesses discuss potential Brexit impacts with their accountants and lawyers in addition to visiting the UK government’s website on Brexit.

“The work continues,” says Carter. “The big surprise currently is how many businesses are still not considering any Brexit-related action.”

Fortunately, BASF has had hundreds of clients attending its dedicated workshops that have received support from government experts. This has allowed attendees to voice concerns and have questions answered in addition to receiving expert knowledge and updates on the situation. Even though the unknowns have been noted, BASF states that feedback from the workshops has been positive and well-received.

“The interaction with different government departments has been good and is getting better,” concludes Carter.

“There has been a clear push to talk directly with industry regarding how they work and what they need now. Whilst we are never getting everything we want, like certainty for example, we are seeing support and acknowledgement of our issues and challenges.” gov.uk/brexit

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NEWS BULLETIN

TANKS & LOGISTICS

AMSTERDAM WAREHOUSE BOOST

CJ Hendriks has opened a new 6,700-m2 warehouse for packaged hazardous goods in Amsterdam’s Schiphol region. The facility is designed particularly to handle ‘PSG15’ substances, which are mainly used in the automotive and chemical industries, but also in care products and foodstuffs. These include such products as paints and inks, lube oils, adhesives, deodorants and other aerosols, automotive batteries and other liquids. Up till now, the storage of such products in the Netherlands has generally take place around Rotterdam.

“With the new PGS15 warehouse, CJ Hendriks Group is facilitating the increasing demand for specialist storage in our region,” says Femke Brenninkmeijer, director of energy, cargo and offshore at the Port of Amsterdam.

“Widening the range of logistics services in the region will improve the business climate. With this in mind, we see the expansion at CJ Hendriks Group as an important development in our region.”

Construction of the new unit (below) began in March 2018; it is said to be “climate-neutral”

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and is designed with a flexible layout to cope with changing demand. It features a carbon dioxide fire extinguishing system. www.hendriksams.com VTG GETS SMART

VTG is to equip its entire tank container fleet with ‘Globehopper’ sensors developed by Nexxiot, which will track the tanks’ location and condition around the world. Equipment of the 9,000-strong fleet is due to commence in spring of 2020.

“Our solution enables VTG to call up information on the cargo, condition and punctuality of its tank containers at any time. Our service works worldwide and across all modes of transport. In this way, VTG can guarantee its customers more transparent transport for liquid and temperature-controlled products,” says Helmut Kaspers, CEO of Nexxiot.

“Security and transparency in the supply chain are enormously important for our tank containers and we welcome every opportunity to further optimise this,” adds Jan Röbken, managing director of VTG Tanktainer. “We want to make efficient use of the opportunities

offered to us by new technologies. Nexxiot has extensive experience in the digitised supply chain, especially in rail freight, and is now our strategic partner in the digitisation of our global tank container fleet.”

The latest generation of Globehopper internet of things (IoT) sensors, introduced in May 2019, is certified with the ATEX markings IIC and IIIC. This allows their operation even in areas where there is a constant risk of explosion, such as during the loading and unloading of tank containers.

To supplement the Globehopper sensors, Nexxiot has developed a software solution to analyse the information they collect. The company offers a complete infrastructure with a cloud-based platform for processing the data from the sensors. For VTG, this information will be fed directly into the company’s systems via an integrated solution from 2020. Nexxiot and VTG are working closely together to design the solution - from the devices up to the gained information. www.nexxiot.com www.vtg.com

CHEMICAL LOGISTICS 25

Russia, as well as acting as a hub for the distribution of imports from western Europe. www.schmidt-heilbronn.de GREENER, CLEANER HOYER

RABEN BIG IN BULGARIA

Raben Group opened its first depot in Sofia, Bulgaria, at the beginning of November. “Our presence in Bulgaria gives us the opportunity to make a bridge between Raben Group and the south-eastern part of Europe stronger. Turkey, Greece and Balkan countries have a solid presence on the trade maps of Bulgaria, which will help us to contribute to the future development of our business,” says Tomasz Nieżwicki, director of CEE region at Raben.

Bulgaria has been seen as one of the booming economies of eastern Europe and this new depot will focus on the automotive, chemical, textile and food processing industries. Raben Logistics Bulgaria is planning to develop its business activity to cover the whole country, providing high-quality services in the field of domestic and international distribution (LTL, FTL). The company is planning to implement major international connections to countries such as Germany, Romania, Italy, Poland and Hungary, where Raben already has its own operations. www.raben-group.com LESCHACO GOES DIGITAL

Logward, a fully independent subsidiary of Leschaco, has left beta phase and announced its market entry with active product commercialisation. Logward is a digital freight forwarding services provider – specifically targeting container shippers – that was created to identify new business opportunities, develop business models and provide new digital freight forwarding services.

Logward describes itself as ‘Supply Chain Management as a Service’, with four central

components: rate and allocation management; planning shipments, including customs clearance and creating packing lists; the actual handling of the transport; and business intelligence functions across the supply chain.

An expansion of the services specifically for air freight is in development.

In other news, Leschaco’s Belgian and Brazilian companies have been granted Authorised Economic Operator (AEO) status.

“The AEO certification is a great success for the Leschaco branches in Belgium and Brazil and a further important step towards continuous efficiency and quality improvement in the operational business for the customers,” the company states. “AEO-certified companies have passed through an extensive audit process by the customs authorities and are therefore considered to be fully compliant with local regulations.” www.leschaco.com SCHMIDT OPENS IN RUSSIA

KSS RUS, a subsidiary of Karl Schmidt Spedition, formally opened a logistics centre for the polymers sector in the Vorsino Industrial Park at Kaluga, Russia on 8 October. The site occupies 45,000 m2 and has a rail terminal to receive containers; it offers packaging, storage and shipping of polymer materials for Russian and international customers and has an expected annual throughput capacity of 500,000 tonnes.

Part of the multimodal Freight Village Vorsino transport and logistics centre, the new facility is ideally located in the greater Moscow area for the distribution of goods coming in to the region from production sites in eastern

Hoyer reports that it achieved a 4 per cent reduction in pollutant emissions on a tonne-kilometre basis during 2018 compared to the year before, representing an improvement of more than 20 per cent within a decade. The achievement reflects an increasing use of intermodal transport, particularly in tank containers, and the use of ‘Smart Tanks’ to help improve efficiency in resource planning.

“This puts the Hoyer Group well on the way to achieving the environmental targets that we have set,” says CEO Ortwin Nast.

Smart Tanks enable more efficient resource planning, decreasing the number of empty runs, as well as reducing costs, Hoyer says.

Fitting tanks with sensors provides discrepancy alarms and considerably improves transport security. Investment in vehicles with Euro-6 engines also has a positive effect on environmental performance. Almost 100 per cent of Hoyer’s trucks in Europe are scheduled to be equipped to this standard by 2020, and it is also trialling the use of LNG and CNG trucks with significantly lower emission engines. www.hoyer-group.com NEW HEAD FOR TRANSPOREON

Transporeon has appointed Stephan Sieber, formerly managing director of SAP Switzerland, as its new CEO; founders Marc-Oliver Simon and Martin Mack will remain as active members of the advisory board, with Simon explaining the move thus: “Transporeon continues to be very successful in transforming Europe’s transportation market. Our solutions offer industrial companies and retailers as well as carriers a real benefit by digitalising processes, cutting waiting times and reducing empty mileage.

We currently have numerous ideas that we want to pursue, in the areas of market intelligence and big data for example. Stephan Sieber is the ideal leadership personality to follow up on these ideas.” www.transporeon.com

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EVERGREEN AMBITIONS SUSTAINABILITY • INDUSTRY IS GENERATING MOMENTUM IN THE FIGHT TO COMBAT PLASTIC POLLUTION ACROSS ALL SECTORS THROUGH INNOVATION AND COLLABORATION THERE IS ARGUABLY no greater challenge facing the world, and the petrochemical industry in particular, than the need for sustainability and being able to extract the most from materials without generating waste. The world has experienced a rapid growth in demand in middle-class and industrial economies that has led to a sharp increase in plastics consumption, with recycling development unable to keep pace.

The result has been a dramatic volume of

legitimate health risks concerning crosscontamination in the reuse of plastics.

Fortunately, drastic steps are being taken by businesses across the industry, such as committing to large-scale initiatives and working with different authorities. Many businesses that are holding the torch for others by implementing new procedures and assisting in wider clean-up efforts are being rewarded for their innovative efforts.

waste plastics inadvertently ending up in key ecosystems.

Being able to stop product loss at the point of manufacture and ultimately reusing plastics packaging are key parts of achieving sustainability targets, but there are hurdles to overcome, particularly as there are

A GREATER GOAL One of the leading programmes that businesses are signing up to is Operation Clean Sweep (OCS). The goal of OCS is to help every plastic resin handling operation to develop and implement the highest quality good housekeeping protocols and exemplary

HCB MONTHLY | DECEMBER 2019

pellet, flake and powder containment practices.

Ultimately, this will lead to achieving zero pellet, flake and powder loss, which will protect the environment and save participating companies valuable resources.

Spilled pellets, flakes and powder can unfortunately make their way into local waterways and enter estuaries and the ocean.

This is not just an eyesore but a serious health hazard. If these products are accidentally mistaken for food by birds or marine animals it can frequently cause harm to them and can remain in the food chain for many years, even contaminating food for people.

The approach set out by OCS involves all companies along the plastics supply chain and obliges them to take preventive measures, as it is only through the cooperation of all partners that these ambitious and essential targets will be met.

OCS has been operating for several years and Bertschi was one of the first logistics service providers to sign the OCS commitment in 2016. Since then, Bertschi has been continuously developing and expanding its efforts surrounding critical points such as terminals, warehouses and transhipment points. In recognition of its exemplary performance as part of the OCS initiative, Bertschi and its subsidiary Nordic

SUSTAINABILITY 27

Bulkers recently received the OCS Award from plastics manufacturer Biesterfeld.

There are other large initiatives that are working diligently to right the wrongs of plastics pollution, including the not-for-profit Alliance to End Plastic Waste (AEPW), which is being strongly supported by the international chemical industry. “History has shown us that collective action and partnerships between industry, governments and non-governmental organisations (NGOs) can deliver innovative solutions to a global challenge like this,” says Bob Patel, CEO of LyondellBasell, a member of AEPW. “The issue of plastic waste is seen and felt all over the world. It must be addressed and we believe the time for action is now.”

This view is echoed by David Taylor, chairman of the board, president and CEO of P&G: “Everyone agrees that plastic waste does not belong in our oceans or anywhere in the environment. This is a complex and serious global challenge that calls for swift action and strong leadership. This new alliance is the most comprehensive effort to date to end plastic waste in the environment. I urge all companies, big and small and from all regions and sectors, to join us.”

WINNING IDEAS Other bodies are also leading the charge for environmental protection and cleaning up work areas. One notable example of this can be found at the Port of Antwerp where a clean-up campaign at the Galgeschoor Nature Reserve takes place every year with the aim of removing huge quantities of historic plastics pollution that has ended up in the waters and accumulated over the years. This year, more than 400 volunteers collected no less than eight tonnes of waste – an impressive feat.

However, millions of small plastic particles remain that cannot be removed by hand.

These minute pieces of plastic can be some of the most damaging and are the result of historical pollution from industrial plastic

pellets that have been lost from companies or ships, nestling in the vegetation layer over the years.

In an attempt to tackle this problem at the source, the Port of Antwerp and the entire plastics sector came together under the Operation Clean Sweep charter two years ago.

The aim was to reach “zero pellet loss”, with participating companies pledging to reduce the loss of pellets to the absolute minimum.

Despite this, more was needed to remove the tiniest pieces of plastic that polluted the area. In response, the Port of Antwerp created the Plastic Challenge, in which participants are challenged to come up with ways to remove these plastics that are feasible in technical, budgetary, logistical and environmental terms. The Plastic Challenge is a great concept to bring businesses together and participate in something that will not only assist the environment, but also benefit the wider industry and all those who use the Port of Antwerp’s facilities.

A total of 55 proposals have been submitted, both from companies and from private individuals in Belgium and abroad, and the winner will be announced 19 December. “We are very satisfied with the high-quality entries that testify to the enthusiasm and commitment for this competition,” says Erwin Verstraelen, chief digital and innovation officer at the Port of Antwerp. “Many feel they are being asked to

approach the problem of plastic pellets in the port with a fresh perspective and to come up with possible solutions. What we are creating here is socially relevant and very important for lasting support: innovation with a purpose.”

Based on feasibility, three of the entries have been short-listed, all of which are based on the principle of vacuuming and removing the pellets by suction. The nominated entries come from Arcadis, Deme Group and Envisan (Jan De Nul Group). A jury will decide which is the most creative, promising and feasible proposal. The winner will receive a prize of €10,000 and the Port of Antwerp will assist the winner in implementing the concept.

There is of course no doubt that the use of plastics has been monumental in improving life around the globe. The development of plastics has led to incredible evolutions in living standards, hygiene and nutrition, but the detrimental effects plastics and microplastics are having on the environment are undeniable.

Thanks to initiatives such as OCS and AEPW and the efforts of businesses such as the Port of Antwerp and Bertschi, big strides are being taken in reducing plastic pollution and developing industry methods that will limit any potential damage in the future. bertschi.com www.portofantwerp.com/en/galgeschoorplastic-challenge endplasticwaste.org

 RECENT PUBLICITY OVER THE IMPACT OF PLASTICS POLLUTION IN THE WORLD’S OCEANS HAS CONCENTRATED THE MINDS OF THE PUBLIC AND THE PETROCHEMICAL INDUSTRY ALIKE, AND STEPS ARE BEING TAKEN

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SMART STRATEGIES PACKAGING • THERE ARE FOUR KEY PHASES INVOLVED IN DEVELOPING A SUSTAINABLE PACKAGING STRATEGY, ACCORDING TO HOOVER FERGUSON, BUT THOSE WHO DO SO CAN REAP SIGNIFICANT BENEFITS

IMPLEMENTING A SUSTAINABLE approach to industrial packaging has hidden benefits for users. Intermediate bulk container (IBC) manufacturer Hoover Ferguson says that an effective chemical packaging strategy is “a safe, efficient and cost-effective solution, with sustainability, social responsibility, controlled chemical compatibility, optimisation of costs and profit, informed decision making and reduced logistics at its core”.

In the long term, a sustainable approach to chemical packaging can optimise water usage, actively promote social responsibility and better control raw material inflow processes. Packaging strategies that address items such as branding, marketing, transport and operational technicalities can also be forecast better.

The first step to bringing a sustainable packaging strategy into the fold is to prepare.

Users should consider what the targets, goals and scope of the project will be – and it is essential to make these line up with corporate aspirations.

For example, will the strategy consider: • The whole company • A specific region • A group of customers and/or suppliers • Specific chemicals?

Outside of this, data is needed. Businesses looking to create sustainable packaging solutions need to begin gathering and compiling information on essentials such as forecast volumes, the types of chemicals involved, likely order dates and lead times, and the location of packaging supply and the final destination of the product.

 CHOOSING THE MOST APPROPRIATE PACKAGING IS JUST PART OF ESTABLISHING A SUSTAINABLE SYSTEM

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AIMING FOR PERFECTION Once this data has been collected it is time to start analysing it – possibly the most important of the four steps outlined by Hoover Ferguson. This involves transforming the data into meaningful insights and operational scenarios that are relevant to the specific business. Users should focus on the main KPIs: average shipment distance, delivery time and volume. That data can support the construction of plans for different eventualities.

When different scenarios have been constructed, time is needed to evaluate and review workflow performance indicators and the cost-to-benefit ratios of technologies such as GPS, barcoding, RFID, level monitoring and inventory management systems. It is also a good opportunity at this time to develop business process workflows to better understand potential strategy variables. These variables can include vendor/customer/ packaging locations, chemical inflows and

outflows, transport variations, test requirements, storage locations and more.

The third stage is selecting the most appropriate packaging, based on informed decisions from previous processes. The bottom line is that safety is the number one priority for packaging – no exceptions. After selecting a solution that incorporates the highest safety requirements, the sustainability of the packaging needs to be evaluated. This is not just in terms of corporate social responsibility and financial cost, but also the ability for an option to remain valid and accommodate future company growth.

Additional calculations that need to be considered are the differences between rental and purchase options if these are variables that may arise.

Finally, there is the execution of the plan. In the words of Hoover Ferguson, “strategy without action is a waste of time”. When it comes to implementing the plan, the solution and execution should be tailored to each business and its individual operations and time requirements. This is designed to improve performance, operational efficiency and provide a sustainable impact, so special focus should be placed on safe operations, avoiding operational disruptions, team training and KPI monitoring to ensure a smooth process.

If these steps are followed, a sustainable packaging strategy can be created and brought into practice for a whole host of specialist businesses. www.hooverferguson.com

SUSTAINABILITY 29

CLEAR THE AIR HYDROGEN • AN EFFICIENT HYDROGEN SUPPLY CHAIN WILL BE VITAL IF INDUSTRY IS TO MEET AMBITIOUS CLIMATE CHANGE TARGETS; SEVEN BUSINESSES ARE EXAMINING THE POTENTIAL IN BELGIUM BELGIUM HAS SET set itself the ambitious target of reducing carbon dioxide emissions by 80 per cent of their 2005 levels by 2050.

Increased use of hydrogen will be an important element in achieving that target as Belgium lacks the wind and solar energy potential to make the necessary difference.

In order to help bring the hydrogen supply chain to fruition, seven major industrial players and public stakeholders are joining forces.

Deme, Engie, Exmar, Fluxys, Port of Antwerp, Port of Zeebrugge and WaterstofNet have

which to coordinate delivery of concrete projects that shape the production, transport and storage of hydrogen.

Hydrogen is regarded as a suitable carrier for renewable energy, being readily produced wherever there is surplus electricity; it can then be moved and be used either as a way of releasing that power or directly as a fuel in industrial or transport applications. This new hydrogen supply chain will demand an efficient and economic solutions for the import, transport and storage as well as

agreed to work together, sharing resources and expertise. A joint study will provide a basis from

specific expertise, which is where these key seven businesses come in.



TOGETHER WE STAND The first phase of the collaboration will consist of the partners making a joint analysis of the entire hydrogen import and

THE PORT OF ANTWERP HAS ALREADY SIGNALLED A MOVE TO ALTERNATIVE ENERGY WITH AN ORDER FOR A NEW HYDROGEN-POWERED HARBOUR TUG

transport chain. The aim of this is to map the financial, technical and regulatory aspects of the various components in the logistics chain: production, loading and unloading and transport by sea and by pipeline.

It is hoped that the outcome of this analysis is a roadmap that indicates the best way to transport hydrogen for the various applications in the energy and chemical sector. The results are due to be finalised in one year.

Ports will play an important role in any form of hydrogen supply chain. Jacques Vandermeiren, CEO of the Port of Antwerp, explains: “We want to give every chance to hydrogen as an energy carrier, as basic element for chemistry and as a fuel, and therefore commit ourselves as an active pioneer of the hydrogen economy. As Europe’s largest integrated chemical cluster, we are an important link in this. We also look at collaboration with spearhead clusters and knowledge institutions and want to learn from this hydrogen coalition for our international ambitions.”

The work will also lean on the expertise of local shipping companies. “As an international transporter of natural gas, LPG, ammonia and other petrochemical gases, Exmar is also focusing on the future,” says Nicolas Saverys, CEO of Exmar. “We want to help investigate how the hydrogen gas transport chain can be developed in the most efficient and economic way. This way, our long-standing expertise in the transport and transformation of gas in the safest way can support all initiatives for the large-scale use of hydrogen gas.”

The scope of the project is broad and its results may well have effects across the industry. Adwin Martens, director of WaterstofNet, sums up the sentiments well: “We are particularly pleased that a number of strong parties will bring their expertise together on the theme of large-scale import, transport and storage of hydrogen. This collaboration offers important perspectives for a further large-scale rollout of hydrogen applications.” www.waterstofnet.eu

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30 SUSTAINABILTY

GAS-FREE TERMINAL POWER • THERE ARE MANY WAYS OF IMPROVING SUSTAINABILITY IN INDUSTRIAL OPERATIONS AND ADPO IS ADOPTING MANY OF THEM AT ITS FACILITY IN THE PORT OF ANTWERP ANTWERP DISTRIBUTION AND Products Operations (ADPO) has recently installed what is said to be the first solar concentrator thermal (CST) energy farm in the European process industry, at its marine terminal and tank container depot in Beveren, on the left bank of the River Scheldt within the Port of Antwerp. This pioneering technology generates eco-friendly heat from sunlight that can be used in industrial operations.

In this case, the CST array can generate high-grade heat at up to 400˚C, replacing the

 THE OPENING OF THE NEW CST INSTALLATION AT ADPO WAS ATTENDED BY LOCAL DIGNITARIES

500 MWh gas boilers that ADPO has so far used to produce the 140˚C steam it uses in tank cleaning operations and for heating tanks and containers.

The plant was installed for ADPO by the Genk-based energy company Azteq as part of a pilot project co-financed by the Flemish government. It consists of lines of parabolic solar reflectors, each 5 m long and with a total area of 1,100 m², installed in lines of 120 to follow the path of the sun; the reflectors are sited above the company’s car park, above a railway line and under power lines, and so take up no extra ground area.

CST technology produces three times more energy per installed square metre than traditional photovoltaic (PV) systems; the

heat can also be stored in insulated containers so that it is available for use at night.

DECARBONISATION IN PRACTICE Such initiatives are nothing new to ADPO, as managing director Filip de Dijcker explains: “Investing in the transition to sustainable, renewable energy is in our DNA. We already generate 700 MWh of electricity per year from solar panels, and the first LNG/CNG gas station was built on our terminal five years ago. We are also making our contribution to the modal shift: thanks to a new container quay we transport 10,000 containers per year by water instead of by road, and we have made significant investments in a rail connection and a direct pipeline connection for two of our companies.”

The ADPO unit is one of three pilot installations in northern Belgium, costing a total of €1,425m; this is being supported to the tune of €819,000 by the Flemish government as part of its efforts to reduce carbon dioxide emissions.

“With this technology we aim to decarbonise a significant part of industrial energy requirements by 2030,” says Koen Vermout, CEO of Azteq. “We want in particular to demonstrate the feasibility of this technology and to establish it here. In addition to Flanders there are also plans for projects in the Netherlands, France, Germany, Austria and Spain. Making the supply of heat for industry more eco-friendly not only leads to significant reductions in CO² emissions but also to technical progress and job creation in a future-oriented circular economy.”

Jacques Vandermeiren, CEO of the Port of Antwerp, adds: “Together with industry we are working to reduce CO² emissions and make the transition to alternative energy sources, so as to become a CO²-neutral port. We want to be a testbed for technological innovation that helps us on the way to a sustainable future. I am therefore proud that this promising technology is being tested first in Port of Antwerp.” www.adpo.com www.azteq.be

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Rogeiro Wehmuth, general manager for Quimisa and Quimilog, says of the acquisition: “I am proud to join the market leader in chemical distribution in Brazil and be part of a solid team that will combine the strengths of both organisations to capitalise market opportunities.”

Anthony Gerace, managing director for mergers and acquisitions at Brenntag Group, is equally optimistic about the venture: “This acquisition will expand our capabilities and service offering in Brazil. The combination of Quimisa’s market position in southern Brazil with Brenntag’s market reach and expertise will benefit our customers and supply partners across the Brazilian market.”

IT HAS BEEN a busy year for Brenntag and things have not slowed down in the third quarter. The German heavyweight in chemical and ingredients distribution has expanded its reach in Latin America, increased distribution agreements across Europe, the Middle East and Africa (EMEA) and has also announced a

international clients with industrial chemicals and a wide range of specialty chemicals including textile auxiliaries, dyes and polymers for the textile, household, food and beverage and paper industries.

“The acquisition of Quimisa is an attractive investment with a strong infrastructure which

EYES ON EMEA In the EMEA region, Brenntag has for several years been successfully distributing Corbion’s products throughout various industries across several countries in the EMEA region.

Brenntag and Corbion have now strengthened that long-time partnership with an enhanced framework agreement providing an innovative way of working together.

Both Corbion and Brenntag agree that collaboration between companies that can ensure the highest levels of product development and service expectations is essential in being able to succeed in today’s markets. Due to this, the cooperation between the two entities is seen as highly beneficial, particularly as Brenntag hosts an incredibly wide portfolio and Corbion provides highly versatile solutions for diverse applications.

“The industry is fast moving, and so are Brenntag and Corbion,” says Marco Bootz, regional vice-president EMEA at Corbion. “We are trusted partners for our customers and with our fermentation capabilities we can create relevant sustainable solutions enabling our customers to have great tasting and safe products in the market.”

This view is complemented by Uwe

new CEO. Focusing on international expansion, Brenntag acquired Brazilian industrial and specialty chemicals distributor Quimisa and its logistics subsidiary Quimilog. Quimisa, headquartered in Brusque and with 2018 sales of €60.8m, supplies regional and

will allow us to increase our market position in Brazil,” says German Torres, CEO of Brenntag Latin America. “The location of its facilities in the states of Santa Catarina, Paraná and Rio Grande do Sul and its business model enhance our abilities to support the textile and household chemicals industries.”

Schueltke, COO for Brenntag EMEA: “Our business teams will work together in a way which goes beyond traditional distribution, with the aim to service manufacturers to the optimum. Brenntag fully supports Corbion’s strategy to develop sustainable solutions for today’s and future industry needs. We are very

WEATHER THE STORM UPDATE • BRENNTAG HAS ANNOUNCED PLENTY OF NEWS IN THE LAST FEW WEEKS COVERING QUARTERLY RESULTS AND INTERNAL AND EXTERNAL EXPANSION PROJECTS

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CHEMICAL DISTRIBUTION 33

happy to take our relationship with Corbion to the next level with this new agreement.”

Corbion is a market leader in lactic acid, lactic acid derivatives, emulsifiers, functional enzyme blends, minerals, vitamins and algae ingredients.

FRESH PERSPECTIVE Looking internally, Brenntag’s supervisory board has picked Christian Kohlpaintner as the company’s new CEO. Kohlpaintner is set to assume the position on 1 January 2020 on the retirement of current CEO Steve Holland.

Kohlpaintner has held a number of senior management positions and arrives at Brenntag from Clariant International, where he has been a member of the executive committee.

“With Christian Kohlpaintner we have been able to place as our new CEO an internationally experienced business leader with a proven track record,” says Stefan Zuschke, chairman of the supervisory board of Brenntag. “He has demonstrated impressively that he can lead and develop major business divisions and companies successfully. It will

 INCOMING CEO CHRISTIAN KOHLPAINTNER (BELOW): “BRENNTAG IS A VERY HEALTHY COMPANY WHICH IS IDEALLY POSITIONED IN THE CHEMICAL VALUE CHAIN. I AM LOOKING FORWARD TO MY NEW ROLE”

be his mission to lead Brenntag to sustainable growth and expand the market leadership further. It will also be about breaking new ground while at the same time preserving the core of the successful business model.”

Christian Kohlpaintner says of his appointment: “I am looking forward to my new role at Brenntag and the opportunity of working with my colleagues on the management board and the whole Brenntag team. Brenntag is a very healthy company which is ideally positioned in the chemical value chain.”

This also marks the end of an era for Brenntag with Holland stepping down after almost 14 years with Brenntag, the last eight years as its CEO. Zuschke says: “The supervisory board would like to thank Steven Holland. Steven’s vision and leadership have driven the company’s growth and success in a dynamic and challenging environment. We sincerely thank Steven for his contributions and for developing the company into the leading position that Brenntag holds in the market today. The supervisory board wishes him all the best for the future.”

NO CHANGE Brenntag’s third quarter financial results reflect a “still-difficult market environment”, but things are looking stable with the numbers being on par for 2018’s results. “Since the beginning of the year, the market environment has continued

to turn down. This negative trend affected us again in the third quarter, impacting adversely on our operating activities, particularly in the two large regions EMEA and North America,” says Holland. “Despite this environment, we were able to achieve stable results at group level thanks to our highly diversified product range and industries served by our global network.”

Operating EBITDA was flat at €262.8m, while after-tax profit rose from €110.5m last year to €128.4m, despite a 1.4 per cent decrease in overall sales. The main problem has been that the EMEA and North America markets continue to show weak demand and low economic impetus. EMEA provided a 0.1 per cent increase in operating gross profit from the year prior at €285.5m, while North America posted a slightly more positive 5.0 per cent increase in operating gross profit on a constant currency basis to €318.7m.

The volatility of markets is still disruptive in Latin America, but there has been solid growth recently and operating gross profit rose 3.5 per cent to €44.5m. However, Brenntag was not able to continue the strength of growth rate in the region seen at the beginning of 2019.

More positively, the Asia Pacific region posted good growth, continuing the performance from operating activities over the course of the year.

Regional acquisitions made a productive contribution and operating gross profit rose by 13.6 per cent to €68.1m. Operating EBITDA in Asia Pacific was up by 34.9 per cent on the prior-year figure to €25.3m.

In July, Brenntag said it expected operating EBITDA growth for 2019 to be between 0 per cent and 4 per cent. Brenntag now expects growth to be at the lower end of this prediction. “The current situation and earnings trend in our regions and the annual forecasts for global economic performance confirm that we are right to take a cautious view of the economic situation over the coming months,” says Holland.

“Macroeconomic conditions are not expected to show any improvement. In this challenging environment, however, we continue to demonstrate resilience. This has already been in evidence in the first nine months of the year, where we have achieved stable results.” www.brenntag.com

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FOCUS ON PHARMA ACQUISITIONS • THE LATTER HALF OF 2019 HAS SEEN CHEMICAL DISTRIBUTOR IMCD DEVELOP A STRONGER PHARMACEUTICAL FOOTHOLD IN KEY MARKETS THROUGH TWO TAKEOVERS

says John Robinson, IMCD business group director pharmaceuticals.

Beat Berger, CEO at DCS Pharma, agrees: “I am absolutely excited about the potential of coupling DCS Pharma’s leading position in APIs with IMCD’s geographic coverage, laboratory network and excellence in excipients. Our existing and future partners will be able to benefit from a significantly increased network within the pharmaceutical industry.”

As one of the leading distributors of speciality chemicals and food ingredients, IMCD has recently been making strides into the pharmaceutical distribution business, targeting acquisitions in Switzerland and South Korea. In the first instance it is to acquire Switzerland’s DCS Pharma in a two-stage transaction, buying 90 per cent of the company on fulfilment of transaction-

Founded in 2016 by the two Swiss pharmaceutical distributors Dolder and ChemSwiss, DCS Pharma currently operates in eight markets around the globe, including Spain, Italy, Germany, Mexico and China, providing a product portfolio of active pharmaceutical ingredients (APIs) for the pharmaceutical and nutraceutical industries.

In 2018 DCS Pharma generated sales of

GROWTH SPURT IMCD has also agreed to acquire Whawon Pharm, planning to take an initial 57 per cent stake in the South Korean speciality chemicals and pharmaceutical distributor, with the remaining shares to be held by the management for up to five years. “We are delighted to expand our geographical

related conditions and the remaining 10 per cent on 31 December 2021.

around €62m and has a staff of 64.

“DCS is a significant acquisition for the development of our pharmaceutical business, not only in expanding our global footprint, but moreover in exploiting the clear pipeline, formulation and marketing synergies between APIs and excipients,”

footprint into South Korea,” comments Robinson. “Whawon are leaders in the supply of excipients and APIs, and their business perfectly complements our leading global pharmaceutical position. We are dedicated to expand into the other regulatory markets of personal care and food.”

 IMCD’S ACQUISITION FOCUS IS CURRENTLY ON EXPANDING ITS PRESENCE IN THE PHARMA SECTOR

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CHEMICAL DISTRIBUTION 35

“IMCD is an ideal partner for Whawon as they share a similar business culture and have a highly dedicated global pharmaceutical presence,” says Young-Hee Won, CEO of Whawon. “We look forward to utilising their technical capability to further develop growth for our customers and suppliers.”

Based in Seoul, Whawon’s distribution focuses on pharmaceutical formulation ingredients, and generated revenues of some €44m in 2018 with a staff of 54. Whawon was founded in 1998 and the experience that comes with the acquisition will be a strong addition to IMCD’s portfolio.

Finally, IMCD says it has finished integrating ET Horn into its US operations.

Horn was acquired in August this year and has now completed the transition into one organisation with dedicated market focus.

“Operating as one unified team, we provide our suppliers and customers with coast-to-

39 YEARS 1980-2019

coast coverage and expertise through our enhanced talent pool of market-driven experts,” says Marcus Jordan, president of IMCD Americas. “Having complementary values of entrepreneurship, transparency and expertise, IMCD is committed to building on Horn’s decades-long reputation of service excellence and expertise.”

QUARTERLY RESULTS IMCD’s third quarter results show progress but there have been setbacks along the way.

As has been the case for businesses across the globe, IMCD has experienced continuing weak demand in EMEA markets causing lower-than-expected results.

Overall, gross profit grew 15 per cent to €457.3m (+14 per cent on a constant currency basis) while operating EBITA increased by 12 per cent to €175.7m (+11 per cent on a constant currency basis), due to a combination of organic growth, the

impact of the first-time inclusion of acquisitions completed in 2018 and 2019 and the initial application of the new IFRS 16 lease accounting standard.

Piet van der Slikke, CEO of IMCD, says: “The first nine months resulted in an EBITA growth of 12 per cent and a cash earnings per share growth of 15 per cent versus the same period of last year. Both the Americas and Asia-Pacific performed satisfactorily whereas EMEA’s results were disappointing (EBITA -2 per cent), caused by lower demand.

Despite this, we are confident that we will continue to achieve our medium-term targets on organic growth and we are positive about the acquisitions we have completed so far and those we expect to complete this year.”

The final quarter for 2019 is set to be one of continued growth, according to IMCD, as the diversity of its markets will offset the decreased demand in the EMEA region. www.imcdgroup.com

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NEWS BULLETIN

CHEMICAL DISTRIBUTION

MIDDLE EAST EXPANSION FOR AZELIS

Azelis has acquired the Lebanon-based distributor Orkila, which will expand its specialty chemical distribution network in Africa and the Middle East. Orkila, headquartered in Beirut, currently operates offices in 13 countries and has an active presence in more than 30 countries.

Dr Hans Joachim Müller, Azelis CEO and president, says: “We are very excited that Orkila will become a part of Azelis. They are a well-established company, known in Africa and the Middle East for their high-quality expertise and service. We have been impressed by Orkila’s committed management, the similarity of our business models and excellent cultural fit.”

More than 220 Orkila employees will join the Azelis team. To ensure business continuity, Audrey Sacy Aris, Christophe Sacy and other senior managers will continue to run Orkila operations.

Meanwhile, in Turkey, Azelis has acquired Ekin Kimya, the leading Turkish specialty

HCB MONTHLY | DECEMBER 2019

chemicals distributor for pharma chemicals, food ingredients and lab chemicals. Anna Bertona, CEO and president of Azelis EMEA, says: “The pharmaceutical market in Turkey is very attractive from a distributor’s perspective for a number of reasons: local production and consumption of pharmaceutical products have been steadily growing in Turkey and the Turkish government has been heavily investing in pharma industry as it wants the country to become a major pharmaceutical producer, exporter and R&D hub.”

Azelis and Ekin Kimya share a focus on specialty service offerings and technical expertise. In addition to Azelis’ three laboratories in Turkey, Ekin Kimya will bring a modern pharmaceutical lab to the portfolio. www.azelis.com UNIVAR SOLUTIONS EXPANDS PORTFOLIO

Univar Solutions has been selected to distribute Inovyn’s full line of Cereclor™ chlorinated paraffins in the US. Cereclor is designed for

applications in products such as metalworking fluids, PVC enhancers, coatings, sealants and adhesives, single component polyurethane foams and rubber chemicals.

“Univar Solutions is excited to announce this relationship with Inovyn and to offer their market leading Cereclor line to customers in a wide-variety of industries,” says Mark Fisher, president Univar Solutions US. “Adding a robust chlorinated paraffin line to Univar Solutions’ already leading portfolio positions us well to offer our customers the best range of base and specialty chemicals serving end markets such as lubricants and metalworking fluids.”

Additionally, Univar Solutions will distribute Kaopolite® abrasive in polish and cleaning formulations across Europe for the coatings and adhesives and household and industrial cleaning markets. Kaopolite is now entering the hard surface cleaning market after strong success with soft abrasives.

“Univar Solutions currently works with Imerys Kaopolite across various geographies and we are excited to further expand our collaboration to bring more high performing and sustainable offerings to the market,” explains Philippe Seurin, director industrial specialties EMEA at Univar Solutions.

Meanwhile, Univar Solutions has reported third-quarter adjusted EBITDA of $184.2m, up 17.3 per cent year-on-year following the acquisition of Nexeo. Net income fell from $49.6m to $2.5m, reflecting costs relating to the integration of Nexeo as well as tax and financial charges.

“During the quarter, we controlled the controllables, executed well and delivered solid financial results in a challenging, decelerating demand environment,” says David Jukes, president and CEO. “We made substantial progress on the integration of Nexeo, including a successful, seamless first wave systems migration and roll-out of realigned sales territories to our newly consolidated, energised US sales force.”

CHEMICAL DISTRIBUTION 37

Univar has also downgraded its full-year EBITDA expectations from $725m-$740m to $700m-$725m in light of the global economic slowdown.

In other news, Univar Solutions has extended its contract to provide waste and environmental services at Boeing South Carolina by ten years.

Univar will maintain and improve Boeing’s Zero Waste to Landfill initiative by partnering with small and local businesses to identify and develop unique alternatives for waste.

“This opportunity to continue our strong partnership with Boeing South Carolina means expanding the market-leading world-class waste and recycling programme our teams have built together. We are proud to work with an organisation which is so committed to environmental responsibility and look forward to developing more sustainable solutions that benefit our partners at Boeing, our local South Carolina communities and the environment,” says Ryan Kennebeck, Univar Solutions’ site manager. www.univarsolutions.com BIESTERFELD AND DUPONT STRENGTHEN TIES

DuPont’s Selar® PA 3426R amorphous polyamide is now being distributed throughout the EMEA region by Biesterfeld. Biesterfeld

has been distributing the product in Brazil since June for use in many types of flexible and rigid packaging and in laminated drink and food packaging and expanded coverage at the start of October. “We are delighted to have acquired the new sales rights for Selar,” says Martin Rathke, product manager, Biesterfeld Plastic. “It is a perfect addition to our portfolio which will enable us to offer our customers even better solutions when they come to us for different types of foil or packaging.”

Elsewhere, Biesterfeld and DuPont have expanded their distribution partnership for textile enzymes throughout Europe, Russia, Turkey and North Africa. Biesterfeld has been distributing a natural moisturiser used in the cosmetics industry for DuPont in select European nations since 2016 and has now been granted extended distribution rights to include textile enzymes.

“The enzyme product range is a new addition to the Biesterfeld cleaning portfolio.

This is good news for our customers, who will benefit not only from proven, reliable products, but also from sustainable processing techniques and more efficient production operations – increasingly important considerations in this sector,” says Sergej

But, market manager cleaning at Biesterfeld Spezialchemie.

“We enjoy an exceptionally successful partnership with Biesterfeld in different market segments,” adds Mike Mossel, EMEA DuPont home and personal care sales leader.

“The expansion of our cooperation to encompass textile applications marks another step towards a shared future. We are convinced that in Biesterfeld, we have found the right distributor for our portfolio.” www.biesterfeld.com BM EXPANDS BUSINESS OFFERINGS

Bodo Möller Chemie has expanded its ongoing business relationship with AFCONA Additives to provide customers with a complete product portfolio for coatings, construction and composites. Having previously only covered Poland and North Africa, the relationship will now also include Denmark, Norway, Sweden, Finland and Iceland.

“AFCONA Additives is one of our reliable partners with excellent products in the additive area. For this reason, we look forward to deepening this cooperation in the Nordics markets,” says Jürgen Rietschle, managing director of Bodo Möller Chemie.

The AFCONA product range encompasses defoamers, lubricants and levelling agents, high molecular weight dispersants, conventional wetting and dispersing agents, fatty acid modified emulsifiers and synergistic agents.

Elsewhere, Bodo Möller Chemie has become the sales and distribution partner for Henkel’s Bonderite products in Germany.

The addition of Bonderite expands Bodo Möller’s portfolio for solutions in cleaning and surface treatments in metal processing.

Bonderite products are suited for cleaning the components of coolants, lubricants and other contaminants that occur during the metalworking process that require removal before painting or other final coatings.

“As a long-standing Henkel partner, we are very pleased about intensifying our current collaboration. With Bonderite, we can now offer our customers outstanding products of a global market leader for optimising their metalworking processes,” says Frank Haug, CEO of Bodo Möller Chemie. bm-chemie.com

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OLD FAITHFUL STEEL DRUMS • ISDI HAS RELEASED A NEW WEBINAR INTENDED TO PROVIDE INDUSTRY PERSONNEL WITH A COMPREHENSIVE OVERVIEW OF STEEL DRUM MANUFACTURE AND USE STEEL DRUMS ARE a cornerstone of the dangerous goods industry and often the first thing that comes to mind when one thinks of industrial packaging. However, just because they have been a solid staple for generations does not mean that members of the industries that use them should become complacent when it comes to drum knowledge.

To combat any gaps in knowledge surrounding the variety of steel drums, the Industrial Steel

 THE STEEL DRUM’S BENEFITS MEAN IT REMAINS ONE OF THE STAPLE MEANS OF MOVING DANGEROUS GOODS SAFELY

Drum Institute (ISDI) has unveiled Steel Drums 101, a technical webinar to provide viewers with a high-level understanding of this essential industrial packaging option.

The ISDI, formerly known as the Steel Shipping Container Institute (SSCI), is a North American non-profit trade association representing manufacturers of steel drum containers in the US, Canada and Mexico.

LEARNING IS KEY The Steel Drums 101 webinar is based on a 50-slide presentation that discusses the unique components of steel drums. The conversation touches on facets such as the difference

between open-head and tighthead drums; what it is about their properties that make steel drum options so versatile, sustainable and safe; and how to read UN and other markings.

Being able to fully understand these markings is essential for participants to be able to learn about the performance standards and develop accurate and safe use techniques for drums for the plethora of materials that can be stored and transported in them.

The webinar also highlights that steel is one of the most recyclable materials available, showcasing its importance in combatting waste and environmental impacts across the industry.

According to the ISDI webinar, 23 million steel drums are reconditioned or remanufactured for reuse each year. Participants will learn in detail about how these drums are manufactured, painted and lined to properly transport and store the variety of materials they could potentially contain.

“As one of the most widely used types of industrial packaging for non-hazardous and hazardous goods, due to their strength, durability and unparalleled safety record, steel drums play a critical role in storing and transporting valuable resources around the world,” explains Susan Nauman, executive director of ISDI. “This webinar is an important tool that those interested in steel drums as a packaging solution, as well as those new to the industry, can use to quickly understand the value of this product.”

Finally, the presentation rounds out with an explanation on the capabilities and safety advantages of steel drums that are equipped with fusible plugs. Being able to fully understand the safety mechanisms and design features of steel drums is pivotal knowledge for users to be aware of, particularly in the event of an emergency when they may be called upon to monitor a situation.

ISDI’s end goal is to promote the common interests of its members through government relations, technical research, education and information exchange, media relations and marketing programmes and this new webinar is a key tool in reaching these targets. whysteeldrums.org

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Recycling network

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PASSIVE PHARMA PACKAGING

CSafe Global has launched the CSafe AcuTemp Plus Series. The new passive packaging solution is set to address the cold chain needs of commercial pharma, clinical trials and cell and gene therapies. The CSafe AcuTemp Plus Series comes with highperforming vacuum insulated panels (VIP)

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The Plastic Drum Institute (PDI) has released Plastic Drums 101, a technical webinar to provide a high-level understanding of the industrial packaging option. Spaced over 45 slides, the webinar discusses the differences between items such as tight-head and open-head drums, the manufacturing process and permeation. It is an essential tool to ensure that newcomers to the industry and experienced individuals are familiar with, and comprehend, all aspects of the plastic drum process.

“This webinar is an important tool for those interested in plastic drums as a packaging solution, as well as those new to the industry, to help them quickly understand the value of this product,” explains Susan Nauman, executive director of the Industrial Packaging Association of North America (IPANA). plasticdrum.org

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NEWS BULLETIN

Jokey ● ● ● Argentina Altec* ● ● ● ● ● ● Greif ● ● ● ● ITA Argentina ● ● Australia Schütz ● ● ▲ VIP* ● ● ● ● ● ● ● ▲ Belarus Jokey ● ● ● Belgium Greif ● ● Promens ● ● ● Brazil Cimplast ● ● Greif ● ● ● ● ● Mauser Packaging Solutions* ● ● ● ● ● ● ▲ Schütz Vasitex ● ● ● ● ▲ Canada Greif ● ● ● ● ● ▲ IPL ● ● ● ● Jokey ● ● ● Mauser Packaging Solutions* ▲ Chile Wenco* ● ● ● ● ● ● ● ▲ China Dalian Plastic Factory ● Fanshun ● ● ● ● GPRO ● ● ● Greif ● ● ● Mauser Packaging Solutions ● ● ● Sinopec Qilu Petrochemical ● Schütz ● ● ▲ Colombia Greif ● Czech Republic Jokey ● ● ● Denmark Greif ● ● ● ● ● ● ● ▲ ▲ RPC Superfos ● ● ● Egypt Jokey ● ● ● France Agriplas ● ● ● ▲ CurTec ● ● ● ● Danplast ● ● ● ● ● ● ▲ ▲ Greif ● ● ● ▲ Jokey ● ● ● Mauser Packaging Solutions* ● ● ● ● ● ● ● ▲ ▲ Plastik Pack ● ● ● ▲ RPC Group ● ● ● Sotralentz ● ● ● ● ▲ Germany CurTec ● ● ● ● Darbox ● ● ● ● Greif ● ● ● ▲ Jokey ● ● ● Maschiopack ● ● ● ●

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MAJOR PLASTICS DRUM PRODUCERS (continued)

HCB MONTHLY | DECEMBER 2019

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Germany Mauser Packaging Solutions* ● ● ● ● ● ● ● Plastik Pack ● ● ● Rikutec ● Schütz ● ● ● ● ● Siepe ● ● ● ● ● ● ● Guatemala Lacoplast ● ● ● ● ● ● ● Hungary Coveris ● ● ● ● ● India Balmer Lawrie-Van Leer ● ● ● ● ● ● Time Technoplast* ● ● ● ● ● ● ● Indonesia Novo Complast ● ● ● ● ● ● Taiko Drums ● ● ● ● Ireland Gem Plastics ● ● ● ● ● ● ● Schütz ● ● ● Israel Darbox ● ● ● ● Mobilak ● Pachmas ● ● ● ● ● ● ● Italy Casone ● ● ● Fustiplast ● ● ● ● ● ● Greif ● ● ● Isi Plast ● ● ● Maschiopack ● ● ● ● Mauser Packaging Solutions* ● ● ● ● ● ● ● Plastinova ● ● ● ● ● Japan Kodama* ● ● ● ● ● ● ● Sanko ● ● ● ● ● Korea Clover Chemical* ● ● ● ● ● ● ● Malaysia Greif ● ● ● ● Polyrak ● ● ● Schütz ● ● Taiko Drums ● ● ● ● ● Mexico Schütz ● ● ● ● ● Plasti-Envases* ● ● ● ● ● ● Morocco Greif ● ● Netherlands CurTec ● ● ● ● HK Plastics ● ● ● Mauser Packaging Solutions* ● ● ● ● ● ● ● Schütz Benelux ● ● Norway Noreko ● ● ● ● ● Greif ● ● ● ● ● ● ● Pakistan Mandviwalla ● ● ● Peru Wenco Peru* ● ● ● Poland Invac Intervac ● ● ● ● Jokey Mauser Packaging Solutions* ● ● Portugal Neorelva ● ● ●

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and single temperature phase change material (PCM).

CSafe states that test results of the new product range have been impressive and temperature performances have been exceptional. The series was developed from a combination of proprietary VIP and enhanced PCM technologies with a focus on user experience and simplicity.

“The AcuTemp Plus Series has been developed with our customers in mind, offering them the level of performance and quality they expect, while delivering the peace of mind they deserve,” says Patrick Schafer, CSafe Global CEO. “The new AcuTemp Plus Series represents a new era in reusable VIP passive packaging, providing an end-to-end cold chain solution with an industry-leading level of temperature performance.” csafeglobal.com IPL POSTS PROMISING RESULTS

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Sustainable packaging solutions provider IPL has reported a net income increase of 54.2 per cent to $7.4m for third quarter 2019, up from $4.8m in the same period 2018. Adjusted EBITDA increased by 32.7 per cent to $27.2m, but revenue declined by 6.3 per cent due to adverse foreign exchange movements, the effect of the pass-through of lower resin prices and the further delay in resumption of automotive bin manufacturing; these are expected to even out over time.

Resin prices are expected to remain stable for the remainder of 2019, though foreign exchange volatility looks set to continue.

Iplpgroup.com GREIF ITALY RECEIVES NEW EXPERTISE

Matteo Morelli has been appointed by Greif as sales director for Italy. Morelli will be responsible for the planning and implementation of sales strategies across Italy and leading the Italy-based sales professionals. He joins Greif having worked for various multinational

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MAJOR PLASTICS DRUM PRODUCERS (continued) Recycling network

Russia Zavod Tarnikh Izdely ● ● ● ● ● Saudi Arabia Al Babtain ● ● ● ● ● Singapore CurTec ● ● ● ● Rex Plastics ● ● Taiko Drums ● ● ● ● ● South Africa Greif ● ● Megapak* ● ● ● ● ● ● Paradigm Packaging ● ● Spain CurTec ● ● ● ● Reyde ● ● ● ● ● ● ● Schütz ● ● Sweden Emballator Lagan Plast ● ● Greif ● ● ● ● ● ● ● Switzerland Logo ● ● ● Plastomatic ● ● ● ● ● ● ● Schoeller Arca Systems ● ● ● Taiwan Chang Chun* ● ● ● ● ● Yung Hsin Contain Industries ● ● ● ● ● ● ● Thailand Pack Delta* ● ● ● ● YPA ● ● ● Turkey Deren Ambalaj ● ● ● ● ● Güngör Plastik ● ● ● ● Mauser Packaging Solutions* ● ● ● ● Özler ● ● Sarten ● ● ● UAE Elan Inc ● ● ● ● ● UK James G Carrick ● ● ● ● ● ● ● CurTec ● ● ● ● FDL ● ● ● ● ● ● ● Fibrestar Drums ● ● ● ● ● ● ● Francis Ward ● ● Gem Harcostar ● ● ● ● ● ● ● Mauser Packaging Solutions* ● ● ● ● ● PD Rotomouldings ● ● ● Promens ● ● ● ● RPC Group ● ● ● Schütz ● ● USA Assmann Polyethylene Tanks ● ● ● ● Berry Plastics ● ● ● Coexcell ● ● ● ● CurTec ● ● ● ● Greif ● ● ● ● ● Patrick J Kelly ● ● ● ● Mauser Packaging Solutions* ● ● ● ● ● ● ● Schütz ● ● ● ● Venezuela Greif ●

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organisations across the chemical, engineering and manufacturing sectors. Greif operates three facilities in Italy: in Bergamo, Brescia and Milan.

Greif ’s regional sales director for western Europe, Michael Vvedenskiy, says: “Matteo’s appointment is part of the continued investment in the development of our business in Italy. His skills and wealth of experience make him the perfect person to support our existing clients and drive our continued strategy of growth.”

“Greif is an innovative and ambitious company, which has a strong focus on delivering excellent customer service and high quality, cost-effective packaging solutions,” says Morelli. “I am looking forward to building on the skills and strengths of the team so that together we can take Greif ’s industry leading portfolio of products and services to help achieve the company’s ambitious growth targets for Italy.” www.greif.com

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 MATTEO MORELLI (ABOVE) WILL HELP GREIF EXPAND ITS MARKETING PRESENCE IN ITALY

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GASPING FOR GAS GAS • THIS YEAR’S RISING LPG TANKER MARKET LOOKS SET TO CONTINUE, WITH CONFIDENT EXPECTATIONS OF FURTHER GROWTH IN LONG-HAUL GAS TRADES

Further new export capacity has come onstream in Australia and Canada, where the new AltaGas facility in British Columbia opened earlier this year; these two sources were responsible for around 0.4m tonnes of new exports in the third quarter.

WIDENING PRICE DIFFERENTIALS, the opening of new export terminals and continued appetite for LPG imports across Asia have contributed this year to a significant increase in freight rates for LPG tankers in most size ranges but most notably among very large gas carriers (VLGCs). Market analysis reported by VLGC owners suggests that there is more to come, with projected fleet growth likely to be outstripped by rising demand, at least in the near term.

LPG exports in VLGCs from the US amounted to 8.5m tonnes in the third

which has provided sufficient supplies for ten cargoes per month since March 2019.

VLGC operator Dorian LPG says that the US is currently exporting close to capacity.

It is not just the US that has been generating new demand for VLGCs. LPG exports from the Middle East rose from 7.9m tonnes in second quarter 2019 to 8.2m tonnes in the subsequent period, despite temporary disruptions caused by refinery and tanker attacks and lower Iranian exports. VLGC operator Avance Gas expects Middle East exports to be further

BURNING FOR PROPANE The third quarter of 2019 also witnessed the emergence of some significant new sources of demand. In China, Dongguan Grand Resource & Technology conducted trial production at its new 600,000-tpa propane dehydrogenation (PDH) plant and Hengli Petrochemical started up a new single-train PDH unit. SP Chemical brought a new steam cracker onstream, using both ethane and propane as feedstock. Given the current trade battle between the US and China, these new plants are currently using LPG sourced from the Middle East.

Meanwhile, in South Korea, both Hanwha Total and LG Chem brought steam crackers

quarter of 2019, up from 7.0m tonnes in the same period a year earlier. That equates to 59 cargoes per month for the latest period, compared to 51 per month in first quarter 2019, with much of the increase resulting from the opening of the Marine East II pipeline to Marcus Hook on the east coast,

constrained over the winter due to refinery maintenance outages and higher domestic consumption. This should result in additional tonne-mile demand for VLGCs, with some product moving into Asia – although not to China – from the US instead of the Middle East.

back online after maintenance, during which both were expanded and will be using more propane feedstock. Not only did all this activity increase demand for LPG, but during the third quarter the price spread between the US and Far East widened, allowing an increase in freight rates.

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TANKER SHIPPING 43

As a result of all this, according to Drewry Shipping Consultants, global seaborne LPG trade is expected to increase by 4.3 per cent to 103.5m tonnes, with 2020 likely to see a 4.7 per cent year-on-year increase to 108.4m tonnes. Epic Gas, leading operator in the fully pressurised segment, quotes Facts Global Energy (FGE), which is predicting that global LPG seaborne volumes will hit 124m tonnes by 2025, of which 64 per cent will be moving from the Americas to Asia. Import growth rates in India and South Korea are expected to average 8.0 and 5.0 per cent per year, respectively, although Chinese LPG imports are projected to grow by some 2.5 per cent annually, FGE says.

THE SUPPLY SIDE The shipping market has been further tightened in recent months by vessel supply disruptions, not least to cope with the need to retrofit exhaust scrubbers or prepare fuel tanks ahead of the arrival of the ‘IMO 2020’ emission rules on 1 January 2020. As an indication of the current situation, Avance Gas notes that its own fleet utilisation averaged 96.5 per cent during the third quarter Avance Gas says the global VLGC fleet totalled 280 ships in October 2019, with another 37 on order, equating to 13.2 per cent of the active fleet. Of the newbuildings, three were due for delivery before the end of 2019 and another 21 are scheduled to be delivered over the course of 2020.

Among smaller LPG tankers, the orderbook is even tighter. Epic Gas says that there are only 17 fully pressurised tankers of 3,000 m³ or larger currently on order (excluding domestic Chinese ships), with a total capacity of 88,500 m³. That equates to just 5 per cent of existing capacity in the segment. Furthermore, there are 20 ships in the water that are 28 years of age or older, equivalent to 4.2 per cent of existing capacity, and are assumed to be candidates for imminent scrapping.

Epic Gas also looks at the smaller end of the semi-refrigerated segment, where there are only five ships currently due for delivery by the end of 2020; of these, two are ethylene ships purpose-built for that trade. Epic Gas expects

“PROJECTED FLEET GROWTH IS EXPECTED TO BE OUTSTRIPPED

BY RISING DEMAND, AT LEAST IN THE NEAR TERM”

scrappage to exceed newbuilding activity in the near term, especially given the cost of meeting incoming legislation on ballast water treatment and emissions control.

MORE TO COME It is widely expected that all those new ships due to join the fleet over the coming two years will find employment as a result of further increases in seaborne trade. In the US alone, Enterprise Products Partners is in the process of expanding export capacity at its complex in Houston, which may generate a further 23 VLGC cargoes per month by third quarter 2020; in addition, expansions by Targa Resources, Energy Transfer Partners and Phillips 66 will further boost potential exports.

Avance Gas also notes that US exports are now closing in on 50 per cent of domestic production, which is expected to put growing pressure on domestic LPG prices and may open up further volumes for export.

Although some tonnage will return to the market after work to prepare for IMO 2020, it is the case that some of the refinery outages that have affected vessel demand in recent months were also related to the need to optimise refinery output to meet the changing profile of bunker fuel demand; that too is expected to return to normal in the early months of 2020, presaging perhaps a calmer period for the gas tanker freight markets, albeit at levels higher than in previous years.

 VLGC OWNERS ARE CURRENTLY REAPING THE BENEFITS OF A RISING FREIGHT MARKET, AND ARE GENERALLY CONFIDENT THAT THE SITUATION WILL LAST WELL INTO 2020 IF NOT FURTHER OUT

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In early October this year, Proman Shipping AG and Stena Bulk AB established a 50/50 joint venture, Proman Stena Bulk Ltd, with the aim of examining the viability of using methanol as a fuel for oceangoing tankers as part of a broader move to more sustainable operations.

Explaining the move, Anita Gajadhar, Proman’s managing director, said at the time: “This is an exciting step for Proman Shipping, which sees us not only partner with a world-leading shipping operator, but also invest in the use of more sustainable marine fuels without compromising on efficiency. We

an agreement with Guangzhou Shipyard International (GSI) to build two state-of-theart IMOIIMeMAX methanol-ready 49,900 dwt vessels, with the first due for delivery at the beginning of 2022.

OF THE SAME MIND The new tankers will be based on Stena’s IMOIIMAX product/chemical tankers, a lengthy series of which was built by GSI between 2015 and 2018; over the past year, Stena Bulk and GSI have conducted extensive development work and towing tank tests.

emissions from ships – the so-called ‘IMO 2020’ rule. Methanol is available at more than 100 ports around the world and offers significant capital cost and safety advantages over LNG. Compared with regular marine fuel, methanol offers a more than 95 per cent reduction in emissions of sulphur oxides (SOx) and particulate matter, and a 60 per cent reduction in nitrogen oxides (NOx) emissions.

“GSI have a proven track record with their 13 previous IMOIIMAX vessels for Stena Bulk, and we are very pleased to have reached this agreement with them to build our pioneering new methanol tankers,” says Proman Shipping CEO David Cassidy. “Methanol is a readily available liquid fuel that meets the strictest emissions criteria, and it has huge global potential as a proven substitute for conventional bunker fuels.”

“We from Stena Bulk are looking forward to being back in a well known shipyard to us, where we know that they will deliver what is expected: a high level of experience including care, innovation and performance,” adds Erik Hånell, president/CEO of Stena Bulk. “We are really looking forward to doing this with Proman, as a new high-calibre partner with similar values that we know will develop both ship design and some exciting new features in driving improved performance of the ships.”

On delivery, the two ships will go on long-term charter to Proman Shipping, a subsidiary of Switzerland-based Proman Group, which specialises in the production, sale and distribution of products derived from natural gas, including methanol, ammonia, melamine and urea-ammoniumnitrate (UAN) solution. It has methanol production facilities in Trinidad & Tobago, Oman and the US; methanol marketing is

are proud to be partnering with Stena Bulk, who share our commitment to innovation and to be pioneering the use of methanol as a fuel of the future together.”

It did not take long for the partnership to make a move in the market; in mid-November Proman Stena Bulk announced it had finalised

The newly ordered vessels will be fitted with the latest generation of dual-fuel engines and run on methanol, which has a number of advantages over alternative fuels being considered as ways of meeting the International Maritime Organisation’s (IMO) latest provisions restricting sulphur

conducted through a joint venture with Helm AG, Helm Proman Methanol. Proman Shipping was established in 2018 in order to expand the group’s global reach; it currently manages 12 timechartered vessels. www.proman.org www.stenabulk.com

ALCOHOL CONSUMPTION METHANOL • SEVERAL OPTIONS ARE OPEN TO SHIPOWNERS LOOKING TO CURB EXHAUST EMISSIONS. A MOVE TO METHANOLFUELLED SHIPS IS BEING INVESTIGATED BY STENA BULK

HCB MONTHLY | DECEMBER 2019

TANKER SHIPPING 45

and maritime safety have always been of top priority for Terntank, a family owned company having its roots on the island of Donsö,” the company adds.

A TERN FOR THE BETTER INNOVATION • THE USE OF HYBRID POWER SYSTEMS IS WELL ESTABLISHED IN THE AUTOMOTIVE SECTOR BUT NOT YET IN TANKER SHIPPING. TERNTANK IS AIMING TO CHANGE THAT DENMARK-BASED TERNTANK has over a number of years displayed a consistent approach to innovation designed to improve the environmental footprint of its oceangoing tanker operations and has announced another step on that path with an order for two hybrid vessels from AVIC Dingheng.

The 15,000-dwt chemical/product tankers, designed by Kongsberg, will feature a hybrid battery system and are designed to use shore power when in port. Their main engines will run on LNG or liquefied biogas (LBG). They

 TERNTANK HAS BEEN A PIONEER IN THE USE OF LNG AS FUEL FOR SMALL CHEMICAL/PRODUCT TANKERS

are expected to operate primarily in the Baltic and North Seas following delivery in 2021.

“Terntank strongly supports the greenhouse gas reduction targets of the maritime sector,” the company says. “The next generation LBG/ LNG-powered product tankers will give a strong lead in reaching the greenhouse gas reduction goals of the International Maritime Organisation (IMO).”

Terntank notes that it was the first shipowner to order LNG-powered product/ chemical tankers, as long ago as 2013. In September this year its 2016-built Ternsund (15,000 dwt) became the first vessel to bunker LNG in a ship-to-ship transfer at the port of Södertälje, Sweden, during cargo operations.

“The protection of the marine environment

INITIATIVES APPRECIATED That commitment has been noticed by the shipping industry. In September this year, Terntank received the Greenports Award from Bremenports, in recognition of its fleet being the most environmentally friendly to use the ports of Bremen and Bremerhaven during 2018.

“Terntank is one step ahead of legislation and works continuously and successfully to improve the fleet’s environmental performance.

This makes Terntank a role model on the road to clean shipping,” said Robert Howe, Bremenports’ CEO, presenting the award during the Sustainable Shipping conference in Bremen.

In March this year the affiliate Tärntank Ship Management received the award Global Game Changer 2019 from Biogasakademin (Biogas Academy) in Sweden for contributing to a low carbon model for shipping. Speaking at the award ceremony, Jan Rapp, founder and managing director of the Biogas Academy, said: ”Terntank and the Donsö island shipping operators are showing a leadership the world needs. The Gothenburg region is a global leader in using biomethane as fuel in road transport.

By accepting higher costs in the acquisition of new, more technically advanced vessels, the local shipping operators make it possible to wuse the same fuel offshore.”

Terntank is also recognising the importance of sustainability to any ship operator, particularly those operating in the environmentally conscious Nordic countries. In August this year it appointed a sustainability coordinator/ controller in the shape of Marcus Jakobsson, who has a degree from the Gothenburg School of Business in the area of environmental economics, with a focus on sustainable business. He already has experience in working with sustainability reporting and climate compensation and has run a startup in sustainable food production. “It will be exciting to meet future challenges and opportunities that the industry is facing and continue to work for an increasingly sustainable shipping,” he says. terntank.com

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NEWS BULLETIN

TANKER SHIPPING

butane to India and a transpacific cargo of US ethane to China; both of these are thought to be the first time ships of this size have handled such exports, which are adding substantially to tonne-mile demand in the sector. Timecharter rates have responded, rising by $200,000/ month from end June to end September to reach $740,000/month. www.navigatorgas.com EPIC GETS PREPARED

BIG BUCKS FOR BW

BW LPG has reported its highest ever quarterly net profit, posting a third quarter figure of $117m, on the back of what the company calls “outstanding commercial performance and a strong VLGC freight market”. That strength was supported by firm US LPG export volumes and high price spreads, with more to come once the new Enterprise terminal comes onstream.

Those volumes are finding a ready market in the petrochemical sector in north-east Asia and in the retail sector across Asia. BW LPG therefore expects further increases in tonne-mile demand for its VLGCs, giving “a positive freight outlook for the remainder of 2019 and 2020”.

BW LPG has meanwhile agreed to sell its two remaining large gas carriers, the 59,400-m3 sisters BW Nantes and BW Nice (both built in 2003). BW LPG will book a net gain of $9m on the deal. Brokers identify the buyer as TGO, formerly Texas Gas & Oil, which is involved in international LPG trading. www.bwlpg.com TEAM STEAMS AHEAD

Team Tankers International has posted third quarter EBITDA of $13.4m, up on the $11.8m recorded in the previous period and well ahead

HCB MONTHLY | DECEMBER 2019

of the $0.7m recorded for third quarter 2018.

This came despite a slight decline in average timecharter equivalent rates from the second quarter figures.

Hans Feringa, Team’s CEO, comments: “We finalised the sale of the last two of our five older MRs at attractive levels, concentrating our efforts on our younger, more sophisticated, deepsea assets. With the sale of the older MRs and certain intermediate ships, we have freed up capital for investment activity and positioned ourselves for 2020 with a more focused deepsea fleet. The divested asset prices in this quarter are at price levels well above what is implied by the third quarter traded share prices, further proving value for our shareholders. We will consider additional divestment and investment activity as we continue our positioning into 2020.” teamtankers.com NOVELTIES FOR NAVIGATOR

Navigator Holding has reported third quarter operating revenues of $75.6m, down on last year’s $80.8m, with adjusted EBITDA slipping from $30.4m to $29.5m. The company notes some interesting trade developments, with its medium-sized gas ships handling a cargo of US

Epic Gas has reported third quarter adjusted EBITDA of $13.5m, a slight decline on the $13.8m recorded a year ago. Revenues were strong at $47.1m, compared to $40.6m in third quarter 2018, but average timecharter equivalent earnings and tonnage loaded were both slightly down. CEO Charles Maltby notes that administrative costs were down, despite the larger fleet, and refinancings have put the balance sheet in a better position.

Looking ahead, Maltby says: “As we come to the end of the year, we are finalising our preparations to be fully IMO 2020 compliant and turn our attention to IMO 2030 and IMO 2050. Alongside the positive supply demand fundamentals for global LPG trade, we expect that these new regulations and compliance may drive higher scrappage rates of older vessels.

We are well positioned with an efficient and sustainable younger fleet.” www.epic-gas.com GOOD RETURN FROM DORIAN

Dorian LPG has reported revenues of $91.6m for its second fiscal quarter, ending 30 September, compared to $40.8m a year ago.

Average timecharter equivalent earnings more than doubled from $20,973/day in second quarter 2018 to $47,623/day.

“Expansion of US export capacity and increasing demand in Asia from both the domestic and petchem sectors continue to have a positive impact on freight rates, and our market outlook remains positive,” says John C Hadjipateras, chairman/president/CEO. “We now own four scrubber-equipped ships and expect a further five within the next three months. I am confident that the professionalism of our people and the quality of our ships will earn good returns for our shareholders.” www.dorianlpg.com

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ODFJELL SUFFERS SLOWDOWN

Odfjell has reported third quarter EBITDA of $51m, down from $57m in the prior period, with seasonally lower volumes that were also affected by geopolitical tensions towards the end of the quarter. On the other hand, spot rates were slightly higher and contract of affreightment (COA) renewals so far this year show a 6.1 per cent increase in rates.

“The third quarter was impacted by the usual seasonal slowdown in volumes while rates remained stable,” reports CEO Kristian Mørch.

“Since then, the market has normalised and we are encouraged to see improvement in volumes and improved crude and product tanker markets, which should positively impact our markets going forward. We are further encouraged by ongoing improvement in contract rates and that customers are accepting pass-through of potentially higher bunker costs related to IMO 2020. We expect to report improved results in the fourth quarter.” www.odfjell.com CPO NOW ZEABORN

Claus-Peter Offen Tankschiffreederei (CPO Tankers) has been renamed Zeaborn Tankers following its acquisition by the Zeaborn Group

in June this year. Zeaborn Tankers is now operating as an independent company under the Zeaborn Ship Management brand and extends Zeaborn’s service portfolio into the product and chemical tanker sectors.

“Following our strategy to further consolidate the shipping industry and to expand our services as an integrated and globally active shipping company, entering the tanker management segment was a logical step.

Zeaborn Tankers’ management and employees, the well-managed fleet and their organisational structure are a perfect match to Zeaborn Ship Management,” says Jan-Hendrik Többe, managing partner of Zeaborn Group. zea-ship.com MIDSIZE BOOST FOR EXMAR

Exmar has reported consolidated EBIT of $21.8m for the third quarter, up from $15.4m a year ago, on the back of strong earnings from its VLGCs and midsize LPG carriers and the commercial acceptance of the Tango floating liquefaction unit, which began production off Argentina in November.

VLGCs are now commanding spot rates in excess of $1.8m per month, Exmar says, and rates

for midsize vessels have risen from around $0.5m per month at the start of the year to in excess of $0.8m per month. “The fundamentals continue to look good for the coming months,” Exmar says. exmar.be SASOL OPENS UP TO CHEMSHIPS

Nduna Maritime has moved into the chemical tanker sector in a partnership with Sasol, which is helping to fund the acquisition of Odfjell’s 1998-built Bow Cecil (37,300 dwt). The tanker will be used primarily to move product from Sasol’s coal-to-chemicals plant in Mpumalanga province and will be the first South Africanowned chemical tanker. Odfjell will continue to operate the vessel for its new owners.

“We believe that through this groundbreaking project, we have heeded the call to address the aspirations of our government’s National Development Plan by increasing investment in the country’s ship registry as well as by creating an enabling environment for the improvement of human capital and skills development in the sector,” says Vusi Mazibuko, executive chairman of Nduna’s parent, Mnambithi Group. www.sasol.com

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TRAINING COURSES AIRSAFE TRANSPORT TRAINING PO Box 347 Cloverdale, WA 6985, Australia T (+61 8) 9277 6968 www.airsafe.com.au Dangerous Goods by Air – Acceptance • January 8-10 – Darwin • January 13-15 – Perth • January 22-24 – Melbourne • February 4-6 – Perth • February 5-7 – Sydney • February 12-14 – Brisbane • February 19-21 – Adelaide Dangerous Goods by Air – Refresher • January 7 – Darwin • January 7 – Perth • January 21 – Melbourne • February 4 – Sydney • February 11 – Brisbane • February 12 – Perth • February 18 – Adelaide AMSA Full Acceptance (IMDG) • January 16-17 – Perth AMSA Full Acceptance – Refresher • January 6 – Darwin • January 8 – Perth • January 20 – Melbourne • February 3 – Sydney • February 10 – Brisbane • February 17 – Adelaide • February 25 – Perth Dangerous Goods by Road • February 27 – Perth ALL MODES DANGEROUS GOODS TRAINING 8 Laurel Road Hatton Vale, QLD 4341, Australia T (+61 7) 5411 4415 www.amdg.com.au Dangerous Goods – Initial Air Acceptance • January 20-22 – Sydney • January 28-30 – Brisbane • February 17-19 – Sydney • February 24-26 – Brisbane Dangerous Goods – Air Transport Recertification • January 23 – Sydney • January 31 – Brisbane • February 20 – Sydney • February 27 – Brisbane Dangerous Goods by Sea – Function-Specific, Initial

HCB MONTHLY | DECEMBER 2019

• January 9-10 – Melbourne • January 13-14 – Sydney • January 15-16 – Brisbane Dangerous Goods by Sea – FunctionSpecific, Recertification • January 15 – Sydney • January 17 – Brisbane AUSTRALIAN FEDERATION OF INTERNATIONAL FORWARDERS Westfield Office Tower, Suite 403, Level 3, 152 Bunnerong Road Eastgardens, NSW 2036 Australia T (+61 2) 9314 3055 www.afif.asn.au Dangerous Goods Acceptance (Air) • February 4-6 – Brisbane • February 4-6 – Melbourne • February 11-13 – Sydney Dangerous Goods Re-certification (Air) • January 7 – Sydney • January 13 – Melbourne • January 22 – Sydney • February 3 – Melbourne • February 10 – Sydney • February 11 – Brisbane Shipping Lithium Batteries by Air • February 24 – Sydney Dangerous Goods by Sea – Full Acceptance • January 28-29 – Brisbane • February 17-18 – Sydney • February 25-26 – Brisbane • February 25-26 – Melbourne Dangerous Goods by Sea – Recertification • January 9 – Brisbane • January 14 – Melbourne • January 23 – Sydney • February 13 – Brisbane • February 20 – Sydney • February 27 – Melbourne BUREAU OF DANGEROUS GOODS 4 Corporate Drive, Bldg. 4, Suite D Cranbury, NJ 08512, USA T (+1 609) 860 0300 www.bureaudg.com 49 CFR/IMDG/IATA Initial Training • January 20-24 – Dayton, NJ • February 17-21 – Dayton, NJ 49 CFR/IMDG/IATA Recurrent Training

• January 14-16 – Dayton, NJ • February 11-13 – Dayton, NJ 49 CFR and IATA Initial • January 20-23 – Dayton, NJ • February 17-20 – Dayton, NJ 49 CFR and IATA Recurrent • January 14-15 – Dayton, NJ • February 11-12 – Dayton, NJ 49 CFR and IMDG Initial • January 20-21/24 – Dayton, NJ • February 17-18/21 – Dayton, NJ 49 CFR and IMDG Recurrent • January 14/16 – Dayton, NJ • February 11/13 – Dayton, NJ IATA & IMDG Initial Training • January 22-24 – Dayton, NJ • February 19-21 – Dayton, NJ IATA & IMDG Recurrent Training • January 15-16 – Dayton, NJ • February 12-13 – Dayton, NJ CAMEON PO Box 17345 Edinburgh EH12 1DJ, UK T (+44 131) 334 1929 www.cameon.com

Air Dangerous Goods, Initial • February 4-6 – Toronto • February 11-13 – Montreal • February 25-27 – Vancouver Air Dangerous Goods, Recurrent • February 5-6 – Toronto • February 12-13 – Montreal • February 26-27 – Vancouver CERTIFIED PACKING & TRAINING 17820 Englewood Drive, Units 14-17 Cleveland, OH 44130, USA T (+1 440) 826 9292 www.certpack.com Ground and Air (initial) • January 15-16 – Cleveland Ground and Air (recurrent) • January 14 – Cleveland Multimodal (initial) • January 15-17 – Cleveland DANGEROUS GOODS COUNCIL PO Box 7325 York, PA 17404, USA T (+1 717) 848 8840 www.hazshipper.com

Dangerous Goods by Air • January 13-15 – Manchester • April 20-22 – Manchester

49 CFR & International Air - Certification • January 13-15 – Ft Lauderdale • February 10-12 – Ft Worth

Dangerous Goods by Air – Revalidation • February 7 – Manchester

49 CFR – Certification • January 13-14 – Ft Lauderdale • February 10-11 – Ft Worth

Dangerous Goods by Road and Sea • February 4-6 – Manchester

International Air – Recertification • January 15 – Ft Lauderdale • February 12 – Ft Worth

Dangerous Goods by Road – Upgrade • January 16 – Manchester • April 23 – Manchester Dangerous Goods by Sea – Upgrade • January 17 – Manchester • April 24 – Manchester Dangerous Goods Safety Adviser • February 24-28 – Manchester CANADIAN INTERNATIONAL FREIGHT FORWARDERS ASSOCIATION (CIFFA) 170 Attwell Drive, Suite 480 Toronto, Ontario M9W 5Z5, Canada T (+1 416) 234 5100 www.ciffa.com

DGI TRAINING CENTER 1060 El Camino Real, Suite B Redwood City, CA 94063-1645, USA T (+1 650) 306 8450 www.dgitraining.com IATA Initial • January 15-16 – Chicago • January 20-30 – San Francisco • February 4-5 – Los Angeles • February 12-13 – Atlanta • February 26-27 – Las Vegas IATA Recurrent • January 16 – Chicago • January 30 – San Francisco • February 5 – Los Angeles • February 13 – Atlanta

COURSES & CONFERENCES 49

• February 27 – Las Vegas IMDG Recurrent • January 17 – Chicago • January 31 – San Francisco • February 7 – Los Angeles • February 14 – Atlanta • February 28 – Las Vegas Ground Transportation (49 CFR) Initial • January 13-14 – Chicago • January 27-28 – San Francisco • February 10-11 – Atlanta • February 24-25 – Las Vegas Ground Transportation (49 CFR) Recurrent • January 14 – Chicago • January 28 – San Francisco • February 6 – Los Angeles • February 11 – Atlanta • February 25 – Las Vegas Multimodal Initial (49 CFR/IATA/IMDG) • January 13-17 – Chicago • January 27-31 – San Francisco • February 10-14 – Atlanta • February 24-28 – Las Vegas Multimodal Recurrent (49 CFR/IATA/IMDG) • February 5-7 – Los Angeles

Ground/Air Shipping - Initial (49 CFR/IATA) • February 4-6 – Los Angeles Ground/Air Shipping - Recurrent (49 CFR/IATA) • February 5-6 – Los Angeles Ground/Ocean Shipping - Recurrent (49 CFR/IMDG) • February 6-7 – Los Angeles Air/Ocean Shipping – Recurrent (IATA/IMDG) • January 16-17 – Chicago • January 30-31 – San Francisco • February 13-14 – Atlanta • February 27-28 – Las Vegas Radioactive Materials (Multimodal) • February 20-21 – Las Vegas ENGINEERING EQUIPMENT & MATERIALS USERS ASSOCIATION (EEMUA) 2nd floor, 16 Black Friars Lane London EC4V 6EB, UK T (+44 20) 7488 0801 www.eemua.org/Training-andcompetency.aspx TankAssessor • February 3-7 – London

• February 17-21 – Antwerp FREIGHT TRANSPORT ASSOCIATION Hermes House, St John’s Road Tunbridge Wells TN4 9UZ, UK T (+44 1892) 526171 www.fta.co.uk ADR – Initial • January 20-24 – Leeds • February 17-21 – West Thurrock FREMANTLE TRAINING & TRANSPORT Rathmore Lodge Rathmore Road Torquay, Devon TQ2 6NY, UK T (+44 1803) 293344 www.fremantletraining.co.uk ADR Driver Training • January 20-24 – Bristol • January 27-31 – Plymouth HAZMAT TRAINING SCHOOL SINGAPORE 146A Changi Road Singapore 419726 T (+65) 6542 5539

www.haz-mat-training.com IATA Dangerous Goods Regulations (Initial) • January 13-17 – Singapore IATA Dangerous Goods Regulations (Recurrent) • January 16-17 – Singapore • February 6-7 – Singapore IATA Dangerous Goods Regulations (Awareness) • January 13 – Singapore IMDG Code Dangerous Goods

By Sea • February 4-5 – Singapore Chemical Safety Awareness • January 10 – Singapore SCDF Hazmat Transport Driver Permit • January 9 – Singapore • February 3 – Singapore LION TECHNOLOGY 570 Lafayette Road Sparta, NJ 07871-3447, USA T (+1 888) 546 6511 www.lion.com

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Multimodal Hazmat Shipper Certification (49 CFR/IATA/IMDG) • January 7-10 – Hartford, CT • January 13-16 – Boston • January 13-16 – Princeton, NJ • January 21-24 – Philadelphia • February 4-7 – Orlando • February 18-21 – Charlotte Hazmat Ground Shipper Certification (49 CFR) • January 7-8 – Hartford, CT • January 9-10 – Albany • January 13-14 – Boston • January 13-14 – Princeton, NJ • January 21-22 – Philadelphia • January 27-28 – Baltimore • February 4-5 – Orlando • February 10-11 – Atlanta • February 18-20 – Charlotte • February 24-25 – Nashville Hazmat Air Shipper Certification (IATA) • January 9 – Hartford, CT • January 15 – Boston • January 15 – Princeton, NJ • January 23 – Philadelphia • February 6 – Orlando • February 12 – Atlanta • February 20 – Charlotte • February 26 – Nashville Hazmat Vessel Shipper Certification (IMDG) • January 10 – Hartford, CT • January 16 – Boston • January 16 – Princeton, NJ • January 24 – Philadelphia • February 7 – Orlando • February 21 – Charlotte California Hazardous Waste Management • January 6-7 – Los Angeles • January 9-10 – Santa Barbara • January 13-14 – Fresno • January 16-17 – San Francisco Texas Hazardous & Industrial Waste Management • February 7 – Dallas • February 12 – Houston • February 21 – San Antonio RCRA Hazardous Waste Management • January 6-7 – Cleveland

HCB MONTHLY | DECEMBER 2019

• • • • • • • • • • • • • • • • • •

January 6-7 – Mobile January 9-10 – Cincinnati January 9-10 – Memphis January 13-14 – Chicago January 13-14 – Nashville January 16-17 – St Louis January 16-17 – Charlotte January 21-22 – Atlanta January 22-23 – Orlando January 27-28 – Indianapolis January 27-28 – Charleston January 30-31 – Detroit January 30-31 – Richmond February 5-6 – Dallas February 10-11 – Houston February 19-20 – San Antonio February 24-25 – Phoenix February 27-28 – Denver

Advanced RCRA Hazardous Waste Management • January 24 – Orlando

PETER EAST ASSOCIATES 504 Centennial Park Centennial Avenue Elstree, Herts WD6 3FG, UK T (+44 20) 8953 6721 www.petereast.com Carriage of Dangerous Goods

by Air – Certification • January 6-8 – Heathrow • January 13-15 – East Midlands • January 20-22 – Manchester • January 27-29 – Elstree • February 3-5 – Heathrow • February 3-5 – Stansted • February 10-12 – Luton • February 17-19 – Southampton Carriage of Dangerous Goods

by Air – Revalidation • January 9 – Heathrow • January 16-17 – East Midlands • January 23-24 – Manchester • February 6 – Heathrow • February 6-7 – Stansted • February 13-14 – Luton • February 20-21 – Southampton • February 20-21 – Heathrow Carriage of Dangerous Goods by Road & Sea • February 10-12 – Heathrow • February 24-26 – Bristol

Carriage of Radioactive Material

by Air • February 20-21 – Heathrow Carriage of Diagnostic & Infectious Substances by Air • February 4 – Elstree Carriage of Lithium Batteries

by Air, Road & Sea • January 13-14 – Heathrow • February 10-11 – Southampton Carriage of Excepted & Limited Quantities by Air, Road and Sea • January 20-22 – Elstree • Dangerous Goods Safety Adviser • February 24-28 – Heathrow • February 24-28 – Manchester

TRAININGTEAM 12 Gleneagles Court, Brighton Road Crawley, West Sussex RH10 6AD, UK T (+44 1293) 536943 www.trainingteam.co.uk Dangerous Goods by Air (Initial) • January 13-15 – East Midlands • January 13-15 – Gatwick • January 20-22 – Heathrow • January 20-22 – Manchester • January 27-29 – Leeds • February 10-12 – Gatwick • February 10-12 – Manchester • February 10-12 – Stirling • February 17-19 – Heathrow • February 24-26 – East Midlands Dangerous Goods by Air Revalidation • January 13-14 – Newcastle • January 14-15 – Gatwick • January 16-17 – Manchester • January 21-22 – Heathrow • January 27-28 – East Midlands • February 3-4 – Bristol • February 10-11 – East Midlands • February 11-12 – Gatwick • February 17-18 – Manchester • February 19-20 – Leeds • February 24-25 – Leamington Spa • February 25-26 – Heathrow Radioactive Materials by Air • February 13-14 – Gatwick

Carriage of Lithium Batteries

by Air, Road and Sea • January 14-15 – Gatwick • January 29-30 – Manchester Dangerous Goods by Road • February 5-6 – East Midlands • February 19-20 – Manchester • February 26-27 – Gatwick Dangerous Goods by Road – ‘Top-Up’ • January 17 – East Midlands • January 17 – Gatwick • January 24 – Heathrow • January 24 – Manchester • January 31 – Leeds • February 14 – Manchester • February 14 – Stirling • February 21 – Heathrow • February 28 – East Midlands Dangerous Goods by Sea • February 3-4 – East Midlands • February 17-18 – Manchester • February 24-25 – Gatwick Dangerous Goods by Sea – ‘Top-Up’ • January 16 – East Midlands • January 16 – Gatwick • January 23 – Heathrow • January 23 – Manchester • January 30 – Leeds • February 13 – Manchester • February 13 – Stirling • February 20 – Heathrow • February 27 – East Midlands Multimodal Air, Sea & Road • January 13-17 – East Midlands • January 13-17 – Gatwick • January 20-24 – Heathrow • January 20-24 – Manchester • January 27-31 – Leeds • February 10-14 – Manchester • February 10-14 – Stirling • February 17-21 – Heathrow • February 24-28 – East Midlands Dangerous Goods Safety Adviser • February 24-28 – Heathrow • February 24-28 – Manchester • February 24-28 – Stirling Dangerous Goods Safety Adviser - Refresher • February 26-28 – Heathrow • February 26-28 – Manchester • February 26-28 – Stirling

COURSES & CONFERENCES 51

CONFERENCE DIARY DECEMBER NISTM December 10-11, The Woodlands, TX 12th annual National Aboveground Storage Tank Conference and Trade Show www.nistm.org

JANUARY Platts’ Gas Storage Outlook January 7-8, Houston 18th annual conference on gas storage issues in North America www.spglobal.com/platts/en/events/americas/ gas-storage-outlook/summary Argus Middle East LPG & Petrochemical Feedstocks January 15-16, Abu Dhabi Conference on regional LPG trade issues www.argusmedia.com/en/conferences-eventslisting/middle-east-lpg European Oil Storage Conference January 22-23, Amsterdam Platts’ 13th annual conference on oil markets for terminal owners, ports, oil traders, financiers and analysts www.spglobal.com/platts/en/events/emea/ european-oil-storage/summary COHMED January 27-31, Louisville Annual conference of the Cooperative Hazardous Materials Enforcement Development (COHMED) programme https://cvsa.org/eventpage/events/cohmedconference/

FEBRUARY Annual LNG Conference February 12-14, Houston 19th annual S&P Global Platts conference on the international LNG market www.spglobal.com/platts/en/events/americas/ lng-conference/summary Storck Symposium 2020 February 17-18, Hamburg 36th annual conference on dangerous goods transport (German language) www.ecomed-storck.de/Veranstaltungen/36Internationale-Gefahrgut-Tage-HamburgVeranstaltung-Hamburg-16-18-02-2020.html

Battery Recycling Europe February 19-20, London Conference for the battery recycling and manufacturing sectors www.wplgroup.com/aci/event/battery-recyclingeurope/ International Petroleum Week (IP Week) February 25-27, London Annual week of meetings, lunches, conferences and seminars in London www.ipweek.co.uk/_nocache Hazardex 2020 & PPTEx February 26-27, Harrogate Conference and exhibition on hazardous area operations and personal protective technology www.hazardexonthenet.net/event. aspx?EventID=4848

MARCH ChemCon The Americas 2020 March 2-6, Philadelphia Global conference on chemical regulation https://chemcon.net/upcoming.shtml PPC Spring Meeting March 8-10, San Antonio Bi-annual meeting and tradeshow of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php IATA World Cargo Symposium March 10-12, Istanbul 14th global conference on air cargo www.iata.org/events/wcs/pages/index.aspx NACD Regulatory and Responsible Distribution Workshop March 10-12, Long Beach Meeting for code coordinators and others subject to Responsible Distribution www.nacd.com/education-meetings/ meetings/2020-spring-regulatory-andresponsible-distribution-workshops/ StocExpo 2020 March 10-12, Rotterdam The main annual exhibition and conference for the European tank terminal industry www.stocexpo.com/en/ BADGP March 12, Coventry Annual AGM and seminar of the British

Association of Dangerous Goods Professionals www.badgp.org/event-3391957 Intermodal Asia March 17-19, Shanghai Seventh annual exhibition for the Asian intermodal sector www.intermodal-asia.com Intermodal South America March 17-19, São Paulo International exhibition on intermodal logistics, cargo transport and international trade www.intermodal.com.br/en LogiChem March 17-19, Rotterdam Chemical supply chain and logistics conference http://logichem.wbresearch.com/ International Transport & Logistics Week (SITL) March 17-20, Paris Annual transport event, including Dangerous Goods Logistics Pavilion www.sitl.eu/en/Home/ AFPM Annual Meeting March 22-24, Austin AFPM’s annual meeting for refiners and marketers www.afpm.org/Conferences/ SCHC Spring Meeting March 28-April 1, Charlotte Biannual meeting of the Society of Chemical Hazard Communication www.schc.org/meetings AFPM IPC March 29-31, New Orleans AFPM’s annual International Petrochemical Conference www.afpm.org/events/2734f40000093b

APRIL Megatrans April 1-3, Melbourne Biennial trade show for the freight sector in Australia and internationally www.megatrans.com.au/ Ouray Transportation & Response Symposium April 5-8, Denver First symposium to spread technical knowledge on hazmat response www.ourayservices.com/trs2020/

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

2/9/19

Vehicle Type

Substance

Details

Source

nr Lethbridge, freight train octane Alberta, Canada

CP train derailed some 30 km north of Lethbridge; three tank cars leaked flammable octane; one was buried under other cars, making response difficult; 2-km evacuation zone, roads closed; TSB investigating

CBC

5/9/19

Mbeere South, road tanker gasoline Embu, Kenya

Driver noticed fire under rear of tanker during delivery of gasoline; unable to uncouple the hose, he drove the vehicle away from shops and houses and escaped before fire took hold; subsequent explosion

The Standard

5/9/19

Quetta, road tanker fuel Balochistan, Pakistan

Van was in late-night collision with fuel tanker that sparked a fire; three people died in the blaze, many more injured; police, response teams quickly on the scene

Business Recorder

7/9/19

South Lake Tahoe, road tanker gasoline California, US

Tank truck with 8,400 gal (31.8 m3) gasoline was in collision with car on ramp onto US 50; tanker overturned, hit guardrail; tank ruptured, spilling fuel that ignited; tanker driver was trapped in cab and died in fire

S Tahoe Now

7/9/19

Portland, freight train LPG Oregon, US

Two locos, three tank cars with LPG derailed, damaging bridge supports; UP said there was no leak of gas and no injuries; overpass closed for investigation, cutting access to industrial area

AP

10/9/19

Dupo, rail tank car MIK Illinois, US

Tank car with methyl isobutyl ketone derailed while train was being made up in UP’s railyard near St Louis; tank was damaged; leaking product caught fire; nearby schools, homes evacuated; no injuries reported

St Louis Pub Radio

18/9/19

Ogere, road tanker gasoline Ogun, Nigeria

Road tanker parked overnight near toll gate on Lagos-Ibadan expressway caught fire, exploded in what reports described as “mysterious incident”; no injuries reported; traffic diverted during response

Daily Post

19/9/19

Kamara, road tanker fuel Rift Valley, Kenya

Road tanker overturned on Nakuru-Eldoret highway when driver lost control while overtaking another truck; locals ran to siphon fuel from tanker but were beaten back by police in running battles; no fire reported

Daily Nation

22/9/19

Moxee, rail tank car Washington, US

Around 1,000 gal (3,800 litres) sulphuric acid spilled during unloading of tank car, reportedly due to faulty valve; state Department of Ecology monitoring spill but said there was no risk to the public

KVEW

24/9/19

Bamako, road tanker fuel Mali

Road tanker overturned in centre of capital city after swerving to avoid motorcycle; tanker exploded, killing at least six people and injuring around 50 more; several cars and motorcycles destroyed in blaze

Reuters

24/9/19

Windhorst, road tanker fuel Texas, US

Texas Petroleum tank truck exploded during refuelling near Joe’s Kwik Stop filling station; tanker driver killed in blast; no injuries at nearby school

TNN

25/9/19

Bagan Serai, road tanker acetone Perak, Malaysia

Road tanker with more than 20 m³ acetone from Klang to Penang skidded, overturned into canal; leak of product; responders said there was no danger to the public, though there were reports of sickness

Bernama

27/9/19

nr Blackfalds, freight train fuel Alberta, Canada

CP train derailed north of Red Deer; three tank cars with fuel products leaked; spill was contained, vacuum trucks deployed; no injuries or impact on waterways

CBC

27/9/19

Ayutthaya, road tanker ethanol Thailand

Road tanker with 42 m³ ethanol overturned, caught fire in Wang Noi district; driver reported steering problem before crash; driver had minor injuries; blaze destroyed several parked cars

Bangkok Post

27/9/19

Kansas City, road tanker gasoline Missouri, US

Tank truck was in collision with two other vehicles on I-49 in bad weather; massive fire broke out, causing damage to overhead sign truss; one driver injured in crash but no injuries from fire; road closed

Fox4KC

28/9/19

Chitradurga, road tanker gasoline Karnataka, India

Road tanker hit electricity pole, overturned and caught fire; driver badly hurt but no other injuries; police, emergency responders on scene quickly to douse fire

The Hindu

sulphuric acid

MARINE/INLAND WATERWAY INCIDENTS Date

Location

Details

Source

30/8/19 Brazil Bouboulina crude oil

First reports of major oil spill washing up on Brazilian coast, later affecting 3,000 km of coast in eight states in north-east; Petrobras denied involvement; early in November authorities named Suezmax tanker as suspect

Merco Press

1/9/19

Colrain, — Massachusetts, US

Storage tank at Barnhardt Manufacturing plant leaked sulphuric acid to North River, causing fish kill; state DEP said leak was “not catastrophic” although locals were angry at size of leak and lack of information

Greenfield Recorder

8/9/19

Jamie Whitten lock, barge crude oil Mississippi, US

Unknown volume of oil leaked from Savage Inland barge at lock on Tennessee-Tombigbee Waterway; spill was contained by lock, dam and containment boom; waterway closed; cause under investigation

Maritime Executive

13/9/19

Sture, Norway

Fire broke out in engineroom of tanker (115,340 dwt. 2005) prior to loading at Equinor oil terminal; all personnel not involved in response evacuated; crew, fire department had incident under control in two hours

AP

20/9/19

Lynchburg, barges Texas, US

Nine barges broke moorings during high water after Storm Imelda; two barges became stuck under San Jacinto River Bridge on I-10; another with lube oil beached on mud flat; no reports of pollution

Maritime Executive

HCB MONTHLY | DECEMBER 2019

Vessel

Substance

sulphuric acid

Dubai crude oil Harmony naphtha, MEG

SAFETY 53

MARINE/INLAND WATERWAY INCIDENTS (CONTINUED) Date

Location

25/9/19

Vessel

Substance

Details

Source

Avatiu, pipeline diesel Rarotonga, Cook Is

Fuel leaked from Pacific Energy pipeline to harbour and beaches; skimmers, booms deployed to contain spill in multi-agency response; line being tested to locate site of leak

Cook Is News

26/9/19

Perama, Gunece unknown Greece

Product/chemical tanker (6,300 dwt, 1998), at anchor, was struck amidships by arriving containership ONE Blue Jay; tanker badly damaged but no report of pollution; no injuries reported

Maritime Executive

28/9/19

Ulsan, South Korean

Two explosions aboard Stolt tanker (43,500 dwt, 2009) at Yeompo Quay; blaze spread to Bow Dalian, alongside to take on nitrogen; 18 injuries, mostly shore personnel; suspected styrene polymerisation

FleetMon

30/9/19

Wesel, tank barge fuel NRW, Germany

Unidentified tanker with fuel from Duisburg collided with passenger vessel Avalon Illumination near Niederrhein bridge; several passengers suffered impact injuries; no pollution recorded from tanker

Bild

Details

Source

Stolt unspecified Groenland

MISCELLANEOUS INCIDENTS Date

Location

Plant type

Substance

3/9/19

Uran, Maharashtra, India

gas processing natural gas plant

Five people, including three responders, were killed by a gas explosion at ONGC plant near Mumbai; those killed were investigating leak that collected in storm water drain; more than ten others were injured

Mumbai Mirror

4/9/19

Gurdaspur, Punjab, India

firecracker fireworks factory

At least 23 people were killed, 27 injured by massive explosion in unlicensed firecracker factory in residential area, which had reportedly been operating for years; building collapsed, nearby homes damaged

All India

5/9/19

South Riding Point, oil terminal crude oil Bahamas

Some 120,000 bbl oil spilled from Equinor terminal after high winds during Hurricane Dorian blew roofs off six storage tanks; substantial impact on local environment near shoreline; weather hampered early response

Reuters

5/9/19

Haifa, Israel

Major fire broke out in three warehouses with 80 tonnes vegoils; responders managed to prevent fire spreading to main building with thousands of tonnes; air quality being monitored

Jerusalem Post

7/9/19

Delhi, warehouse oil products India

One worker killed in major fire at oil godown in Punjabi Bagh district; facility not properly licensed; nearby buildings evacuated; some explosions heard as flames reached oil tanks

The Hindu

11/9/19

Ibadan, oil depot oil products Oyo, Nigeria

Several people injured when fire broke out at NNPC depot; fire started at loading point, with one witness saying a driver was trying to jump-start his truck and the battery sparked; fire raged for two hours

Premium Times

12/9/19

Unnao, LPG plant LPG UP, India

Three workers injured in fire that broke out at HPCL gas plant, reportedly after leak of LPG from valve; 1.5-km evacuation zone; roads and nearby rail line closed in case of explosion

Economic Times

12/9/19

nr Kyrenia, army depot munitions Northern Cyprus

12 injured by series of explosions at army ordnance depot in northern part of Cyprus controlled by Turkish army; first blast caused forest fire; nearby residents evacuated, hotel and other buildings damaged

Xinhua

14/9/19

Srondol, police station munitions C Java, Indonesia

One officer injured by explosion of WWII munitions in police evidence warehouse; locals evacuated in case of further explosions; subsequent fire; munitions dated from Japanese occupation

Reuters

16/9/19

S Lorenzo Almecatla, pipeline LPG Puebla, Mexico

Illegal tap found on LPG pipeline; six Pemex workers repairing line were injured when spark ignited leaking gas, causing major fire; incident was in remote area so no impact on population

Poblanerias

18/9/19

Istanbul, Turkey

chemical chemicals plant

Fire broke out at factory in Orhanli industrial zone in Tuzla; during response, a storage tank exploded, sending shrapnel over area; two firefighters injured; damage to buildings, vehicles

Daily Sabah

19/9/19

Antwerp, Belgium

chemical diesel plant

Fire broke out in diesel storage tank at Gunvor petrochemical plant; safety perimeter put in place; site’s fire team and local firefighters brought blaze under control but stayed on site in case it flared up again

Belga

21/9/19

Phoenix, post office acetone Arizona, US

Three postal workers suffered ill effects after package “exploded”; responders found shattered glass bottle in package and identified substance as acetone; no malicious intent suspected

AP

23/9/19

Rubkona, pipeline crude oil South Sudan

Some 2,000 bbl oil reported to have leaked from ageing pipeline in Unity Oil Fields; government said spill was limited to 400 m² but local authority said rivers in three counties had been heavily polluted

phys.org

25/9/19

Donetsk, army depot ammunition Ukraine

Series of explosions, fire at ammunition depot in Kuibyshivskyi area of disputed territory; civilians living nearby evacuated; fire was contained; cause under investigation

Face News

26/9/19

Rouen, Seine-Mar, France

Massive fire broke out in storage area of Lubrizol plant, spewing thick black smoke across area; substantial damage but no injuries reported; authorities later banned harvesting of crops, sale of farm produce

AFP

26/9/19

Warangal, factory chemicals Telangana, India

Three workers were badly injured by explosion at Vajra Matrix Abrasives and Tools plant; thought that chemicals used in manufacture of abrasives triggered blast but further investigation is ongoing

NIE

26/9/19

Abohar, oil plant vapours Punjab, India

Four workers entered empty oil tank at Gursewak Oil Factory to clean it but fell unconscious; three died in the tank, despite rescue efforts; reports referred to “poisonous gas” but simple asphyxiation more likely

The Tribune

vegoil vegoils storage

chemical lube oil plant

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WHAT ABOUT THE WORKERS PROCESS SAFETY • THOSE ON THE SHOP FLOOR OFTEN HAVE THE BEST IDEA OF THE RISKS THEY DEAL WITH AND, CSB SAYS, SHOULD BE INCLUDED IN ANY CONVERSATION ABOUT SAFETY US FEDERAL REGULATIONS require worker participation in matters of process safety and industry standards similarly call for worker participation. Nevertheless, according to the Chemical Safety and Hazard Investigation Board (CSB), recent incident investigations have identified numerous cases where opportunities were missed to include workers in discussions around process safety.

“A lack of effective worker participation can lead to an increase in the risk of injury to workers and, in the event of a serious safety incident, can impact the company and members of the public who live near these industrial facilities,” CSB says in a recent Safety Digest on the topic.

CSB quotes the Center for Chemical Process Safety (CCPS) which, in its Guidelines for RiskBased Process Safety, says:

“Those workers directly involved in operating and maintaining the process are most exposed to the process. The workforce involvement element provides and equitable mechanism for workers to be directly involved in protecting their own welfare. Furthermore, these workers are potentially the most knowledgeable people with respect to the day-to-day details of operating the process and maintaining the equipment and facilities and may be the sole source for some types of knowledge gained through their unique experiences. Workforce involvement provides management a mechanism for tapping into this valuable expertise.”

A ROLE NOT PLAYED CSB notes that, in several investigations, it has identified ineffective worker participation as

causal to the incident and has pointed out that workers and their representatives “play a critical role” in hazard identification, risk reduction and an overall increase in an organisation’s ability to prevent chemical incidents. It has also issued a number of recommendations to companies, individual facilities, labour unions, industry groups, state governments and federal agencies that aim to improve worker participation. These have included: • Creating or improving opportunities for workers to participate directly in matters relating to process safety management and major incident prevention • Empowering workers to provide input on how work is performed, through safety committees, special projects, inspections and audits, hazard analyses or other specific measures • Providing opportunities for workers to be trained and share information on the nature of the hazards present in the workplace, lessons learned from other sites, incident investigation outcomes, industry best practice and the like, and • Strengthening requirements for worker participation in industry standards and state and federal regulations.

BACK TO THE BEGINNING CSB has been alert to the issue for more than 20 years, as evidenced by the first of four cases referred to in its Safety Digest. This was, indeed, CSB’s first investigation and report, and concerned an incident at the Sierra Chemical Company explosives manufacturing plant in Mustang, Nevada in January 1998. Two massive explosions occurred seconds apart, killing four workers and injuring six more.

CSB’s investigation found that the absence of worker participation in process safety activities at the Sierra Chemical Company was a “major cause” of the incident: workers lacked sufficient understanding of the process hazards at the site and the controls that were in place.

While there was a worker participation programme in place, it made no provision for employees to be involved in the development of safety policies. Further, workers did not use and were not aware of written operating procedures and safety information. They knew only that they were handling explosives and

HCB MONTHLY | DECEMBER 2019

SAFETY 55

were required to wear dust masks. Most of the employees were Spanish-speaking and could not in any case understand safety warnings printed only in English.

CSB did make a recommendation to Sierra Chemical that it should ensure its employee participation programme effectively resolved safety issues raised by its workforce, although that recommendation was closed without implementation as the company went out of business after the accident.

STATE REGULATIONS CSB’s Safety Digest also highlights the incident at the Tesoro Refining plant in Anacortes, Washington in April 2010. This involved a catastrophic rupture of a heat exchanger in the plant’s catalytic reformer/ naphtha hydrotreater unit, resulting in a leak of hydrogen and naphtha at high temperature and causing an explosion and intense fire that killed seven employees.

The Board’s investigation found that concerns expressed by the refinery workforce and its union, the United Steelworkers (USW), had not been adequately addressed by managers; in a 2006 process hazard analysis, workers had identified 31 near-miss incidents in the unit over the previous five years. As a result of its investigation, CSB recommended that Tesoro establish a process safety culture oversight committee and that USW should participate in its work; it also recommended that the plant implement a refinery-wide safety culture improvement programme. All of this has now been put in place, to CSB’s satisfaction.

A further aspect of CSB’s report on the Anacortes incident was to recommend that the state of Washington enhance its existing process safety regulation with respect to worker participation, in order to require an increased role for workers in the management of process safety by establishing the rights and responsibilities of workers and their

 CSB STRESSES THAT IT IS WORKERS ON THE GROUND WHO HAVE THE BROADEST KNOWLEDGE AND EXPERIENCE OF THE RISKS THEY FACE; THEIR EXPERTISE IS VALUABLE IN ESTABLISHING EFFECTIVE SAFETY PROTOCOLS

representatives on health and safety-related matters. CSB notes that the state of Washington is working to strengthen its process safety management systems for petroleum refineries and it urges the state to ensure that the process is completed.

HELP THE INVESTIGATORS A similar recommendation was made to the state of California in the wake of CSB’s investigation into a fire at the Chevron refinery in Richmond in August 2012. This involved a catastrophic pipe failure on a crude unit, which released light gasoil that formed a large vapour cloud that engulfed 19 employees; they all escaped, although six were injured.

A large plume of particulates generated by the subsequent fire spread across greater Richmond, resulting in some 15,000 nearby residents seeking medical treatment.

Among its recommendations following its investigation, CSB said California should seek to enhance worker participation by instigating mechanisms for the regulator, the refinery, and workers and their representatives to play an “equal and essential” role in preventing major

vapour explosion (BLEVE) and fire at the Williams Olefins plant in Geismar, Louisiana in June 2013. Again, CSB identified a failure by the company to adequately implement safety improvement identified in a process hazard analysis and said that, in the years leading up to the incident, the plant had “exhibited characteristics of a weak process safety culture”.

More specifically, in its report on the incident CSB highlighted various facets of worker participation as being key to a successful effort to improve process safety culture.

Companies should assess whether workers feel they can report safety issues without fear of retaliation, and whether the company or its individuals proactively investigate worker safety concerns and implement timely and effective corrective actions.

Perhaps most importantly, CSB asks companies involved in high-hazard operations to critically look at whether their workers are effectively involved in process safety decisions and whether an open and collaborative process is used to consider all viewpoints when analysis potential problem areas.

incidents. In response, the state of California implemented significant regulations in 2017 that strengthened process safety management standards and included a requirement for more comprehensive worker participation.

The fourth incident reviewed in the Safety Digest involved a boiling liquid expanding

In October 2018, CSB adopted a new policy for worker participation during CSB investigations. Under this policy, workers and their representatives have the opportunity to participate in certain CSB activities. The policy can be found on the CSB website at www.csb.gov/assets/record/bo40a.pdf.

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REGULATIONS 57

A FLYING START

The UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG) held its 55th session in Geneva this past 1 to 5 July.

This was the first of four planned meetings to develop the changes to the UN Model Regulations on the Transport of Dangerous Goods that will appear in the 22nd revised edition, due for publication in early 2021.

Those changes will then be picked up by the modal, regional and national authorities for implementation beginning in 2023.

vice-chair. It was attended by experts from 19 states, observers from Croatia, DR Congo, Luxembourg, Romania, Slovakia and Turkey, and representatives of the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the UN Food and Agriculture Organisation (FAO), the International Civil Aviation Organisation (ICAO), the International Maritime Organisation (IMO), the World Health Organisation (WHO) and 32 non-governmental organisations.

EXPLOSIVE ISSUES All matters relating to explosives were passed to the Working Group on Explosives (EWG), which met for four days under the chairmanship of Ed de Jong (Netherlands).

The Sporting Arms & Ammunition Manufacturers’ Institute (SAAMI) queried the criteria used in Test 6(d), which is often referred to as the ‘unconfined package test’ and is welcomed internationally as a means of assessing the effects of explosives while still in their package. The 6(d) test is used for some explosives of Division 1.4S but, SAAMI said, the test criteria do not align with the original intention and, on the basis of experience since the test was introduced, these could be improved. In particular, SAAMI noted, it in effect creates two sets of 1.4S explosives, based on the assignment of special provision 347, which was not the intent.

EWG agreed with the need for clarity as to

As is usually the case with the first session of the biennium, while there was a wide array of papers presented to the experts, few changes were agreed; rather, proposals have been sent back for further work or consideration.

The meeting was chaired by Duane Pfund (US) with Claude Pfauvadel (France) as

Yuwei Li, director of the Sustainable Transport Division, informed the Subcommittee that, following the (somewhat reluctant) retirement of Olivier Kervella, Romain Hubert had been chosen to take the role of Chief of the Road Safety Management and Dangerous Goods Section as from 1 June.

what hazardous effects the 6(d) test is meant to identify and that the criteria should be reviewed and updated as necessary. It proposed to set up an informal correspondence group to examine the issues further; this group will be led by SAAMI and its conclusions will be considered

by EWG prior to the submission of »

MULTIMODAL • THE 2019/2020 REGULATORY BIENNIUM OPENED WITH A PACKED AGENDA FOR A ONE-WEEK MEETING OF THE UN EXPERTS, THOUGH FEW DECISIONS WERE FINALISED

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recommendations for action to the Subcommittee at a future session.

The Institute of Makers of Explosives (IME) proposed that ammonium nitrate emulsions, suspensions and gels that have been subjected to and passed the 8(e) test should not then be required to pass the 8(d) test.

While there was general support for the idea within EWG, the US questioned some of the supporting evidence; IME will return with more detail at a subsequent session.

The European Chemical Industry Council (Cefic) proposed to insert a clarification to Table A6.2 in section 3.3(c) of Appendix 6 of the Manual of Tests and Criteria, which stipulates that the Class 1 acceptance procedure does not have to be applied when the exothermic decomposition energy is less than 500 J/g or when the onset of exothermic decomposition is 500˚C or more. This text was adopted in 2013 but, Cefic said, it missed

procedure being applied to a large number of organic materials that are not explosive but which will decompose slowly above 500˚C to release more than 500 J/g.

After thorough discussion, EWG agreed that there are problems that need to be addressed, though it felt that Cefic’s proposed revision did not solve them. Cefic said it would consider the comments made and would likely develop a revised paper for a future session.

SAAMI felt that there is an inconsistency between the wording used in the description of Test Series 4(b)(ii), the 12-metre drop test, which determines whether an explosive as packaged can withstand the free-fall impact “without producing any significant fire or explosion hazard”, and the wording of the test assessment in 14.5.2.4 of the Manual of Tests and Criteria, which omits the word “significant”. These should, SAAMI said, be aligned. While EWG agreed there is a problem

classification system relies on the explosive being in a particular configuration, such as being packaged for transport but, the informal correspondence group has recognised that, in supply, use, manufacturing or processing configurations, the current GHS hazard communication system often understates the actual hazard.

The informal correspondence group has developed a potential new GHS classification system that recognises the differences between those explosives that have been assigned a division based on their transport configuration and those that have not. It does not expect that adoption of its proposals would lead to any changes in the classification for transport. The GHS Sub-committee has asked the group to complete its work by the end of the current biennium, i.e. by December 2020. EWG was invited to review some of the elements of the

an important piece of information, viz that the temperature limit is there to prevent the

with the wording, there was no consensus on the proposal and SAAMI said it would consider the matter further.

Sweden presented a status report on the ongoing work to revise Chapter 2.1 in the Globally Harmonised System of Classification and Labelling of Chemicals (GHS). The current

correspondence group’s decisions thus far and to make comments, which it did. The work will continue.

Cefic raised the issue of the temperature control of energetic substances, such as self-reactive substances and organic peroxides. Temperature control requirements

 THE EXPERTS GRAPPLED WITH SOME VERY SPECIFIC PROPOSALS RELATING TO EXPLOSIVES

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are based on the self-accelerating decomposition temperature (SADT); however, Cefic said, in the case of samples (for instance, of new substances), the SADT may well not be available. How should the provisions be met? Cefic offered a solution based on calorimetric techniques. EWG supported the proposal in principle, finding it a simple solution to the problem, but felt that more supporting data and/or examples should be provided. Cefic will return with an amended proposal at a future session.

EWG discussed a SAAMI paper presented to the GHS Sub-committee on issues relating to the definition of explosives; it was unable to arrive at an agreement and felt that the work would be too complex for it to deal with, given the limited time available. Sweden will instead lead an informal correspondence group, with the aim of presenting recommendations at the next session. It was stressed that this work is not to be part of the broader review of Chapter 2.1 of GHS. Another lengthy paper from SAAMI reviewed the purposes of assigning compatibility groups and the special status of group S; as a result of this review, it felt some work was needed to clarify that the assignment of compatibility groups N and S is based on testing and to clarify that test results consistent with a lower level of hazard are the basis for the differences allowed for transport of 1.4S with other explosives.

EWG agreed that 1.4S classifications are conservatively assigned and controlled during transport, resulting in 1.4S being safe. As such, a note to highlight the fact and to thereby encourage the facilitation of 1.4S shipments would be helpful. EWG asked the Sub-committee for guidance as to where such a note should be placed, but the Sub-committee felt this should not be seen

substances. Opinions were divided but EWG offered some comments, which SAAMI will take into account in drafting a revised proposal.

Germany sought EWG’s help in classifying a new pyrotechnic article that had been presented to the Bundesamt für Materialforschung (BAM) for classification; the article in question, ‘Aquaflame’, is designed as a firelighter and is initiated by the application of water, which generates an exothermic reaction in sodium hydroxide. This points to assignment of compatibility group L. However, the article as packaged fits Division 1.4, but there is no UN entry for 1.4L. EWG offered several solutions, such as assignment to Division 1.3L or, if possible, 1.4S; assignment to compatibility group G was also mentioned.

Germany will consider those suggestions and will likely come back with a new document on the topic.

as a regulatory statement. SAAMI will prepare a revised proposal.

SAAMI queried the value in requiring the net explosive mass (NEM) to be shown on the transport document for Division 1.4 explosives, as there are no limits or requirements linked to NEM for these

with a revised proposal.

Organic peroxides As ever, Cefic brought a paper with new organic peroxide formulations that have recently become commercially available, and which needed to be added to the list in 2.5.3.2.4 and portable tank instruction T23. Fortunately, on this occasion, »

LISTING, CLASSIFICATION AND PACKING SP 274 Switzerland sought to clarify the scope of special provision 274 through an amendment to 3.1.2.8.1.2, which requires that, for dangerous goods described as ‘nos’ or in generic entries, not more than two constituents that most predominantly contribute to the hazard(s) of the mixture or article should be shown. The paper noted that there are cases in which, while the mixture itself may be flammable or present another hazard, the individual constituents are not dangerous goods as defined by the Model Regulations.

The Sub-committee confirmed that 3.1.2.8.1.2 does apply in cases where a mixture’s constituents are all non-hazardous and the proposal was not supported; some delegates noted that, even if the constituents themselves do not present a hazard in transport, it can be useful to know what is in the mixture. Switzerland may come back

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there were only two names on the list and the Sub-committee approved their inclusion as proposed.

Polymerising substances Another paper from Cefic sought to exempt polymerising substances packed in small packages (less than 50 kg net weight) from classification in Division 4.1, under defined circumstances.

Most of the experts were in favour of providing some degree of relief, on the basis of the maximum surface temperature, the heat of polymerisation, and packaging criteria.

However, the proposal as drafted was not accepted and Cefic was invited to substantiate its proposal and provide more detail.

Section 4.1.2.2 Switzerland sought clarification of the scope of 4.1.2.2 in respect of non-metal intermediate bulk containers (IBCs) so as to enable their carriage for the disposal or recycling of their contents. At present, by dint of the time limits imposed in 4.1.1.15 on the use of non-metal IBCs, there is no way for them to be used after they reach five years old, whereas for metal IBCs 4.1.2.2 sets out conditions under which they may be carried

HCB MONTHLY | DECEMBER 2019

UN 3509 SHOULD BE REMOVED FROM THE MODEL REGULATIONS, AS THE ISSUE IS SPECIFIC TO EUROPEAN ROAD TRANSPORT

after the date of the last periodic test or inspection. Switzerland believed this was an anomaly and proposed a revised text for 4.1.2.2.

While some delegations considered that the current provisions are clear and fit for purpose, others acknowledged that the text could be improved to address the issue raised

by Switzerland, which will consider whether to submit a revised proposal in light of comments made.

Empty packagings Similarly, Switzerland proposed the introduction of a general rule to authorise the transport of empty packagings, including empty IBCs and large packagings, for disposal, recycling or recovery of their material, even when they are not in compliance with the provisions of the Model Regulations.

This did not meet with the approval of the Sub-committee, which felt that the issue ought to be dealt with on a regional level; Switzerland offered to submit a revised proposal to the RID/ADR/ADN Joint Meeting.

Commenting on the Swiss proposal in an informal document, the International

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Confederation of Container Reconditioners (ICCR) went further, saying that UN 3509 and related provisions should be removed from the Model Regulations, as it feels the issue is one that is specific to European road transport.

Furthermore, the use of UN 3509 has crept into areas where it was not intended and ICCR felt that this could be rectified by an amendment to special provision 374. This received general support from the Subcommittee and ICCR will work up a formal proposal for a future session.

SP 363 Switzerland sought clarification of the exemption provided under special provision 363(j), which requires labelling and placarding for engines and machinery of UN 3528 and 3530 that contain more than 60 litres of liquid fuel, when their capacity exceeds 3,000 litres. However, what is to be done once the engines or machinery have been used and now contain less than 60 litres of fuel? It seems that labels and placards should then be removed. For such items subject to regular transport and use, this leads to the need to continually affix and remove labels and placards. The Swiss paper proposed adding a sentence to clarify that those labels and placards do not have to be removed if the volume of fuel in the engines or machinery drops below 60 litres.

Most experts agreed that the current text does not preclude the labelling and placarding of engines or machinery with less than 60 litres of liquid fuel and did not support the need for change. There could be a case for amending SP 363(l) and requiring that vehicles carrying such engines and machinery are accompanied by the appropriate transport document. However, the Sub-committee preferred not to amend the text of the Model Regulations and invited Switzerland to seek a solution at regional levels.

Spanish names Spain had completed its review of the often conflicting proper shipping names shown in the Spanish language

(IMDG) Code, the ICAO Technical Instructions, and ADR and RID. The Sub-committee invited the Secretariat to note the changes and incorporate them in the next revised edition of the Model Regulations. The changes have no impact on the English or French versions.

Transformers Germany reported that, for operational reasons, transformers are pressurised with nitrogen or with synthetic or dried air, or a mixture of these gases.

As transformers are not gas-tight, a small volume of gas is constantly supplied through a pressure regulator from a gas cylinder connected to the transformer. Carriage by sea is normally done under UN 3363, Class 9 but the latest edition of the IMDG Code will require their carriage under UN 3538, Division 2.2. Further, packing instruction P006, which applies to UN 3538, allows transformers to be transported unpackaged and does not explicitly require them to be gas-tight; however, P006(3)(d), which applies to the connected gas cylinder, requires that valves shall remain closed during transport. Germany said that the gases involved are not flammable, toxic, corrosive or oxidising and, unless they collect in a confined space, their hazard is low. However, as things stand, competent authorities will face a large number of requests for approval to allow the carriage of transformers in future; it sought the addition of a new special provision to provide a general exemption.

The Sub-committee saw the reasoning behind Germany’s proposal but felt that some issues needed further work in the area of transport conditions and communication of the asphyxiant hazard.

Germany will prepare a revised proposal for the next session.

Cobalt dihydroxide A joint paper from the Responsible Packaging Management Association of Southern Africa (RPMASA), Cefic and the International Confederation of Plastics Packaging Manufacturers (ICPP) noted that cobalt dihydroxide in various forms

versions of the Model Regulations, the International Maritime Dangerous Goods

has been safely shipped around the world for several decades; more than 200,000 tonnes are transported annually under UN 3077, packing group III in flexible IBCs. Although there have been no recoded or known health issues arising from the transport of cobalt dihydroxide, recent »

 TEST DATA SUGGEST THAT SOME PRODUCTS MAY NOT BE SUITABLE FOR CARRIAGE IN FIBCS

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testing for authorisation under the EU’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation has indicated a classification of acute toxicity by inhalation, Category 1, which would equate to a classification for transport of Division 6.1, packing group I. This would present a serious challenge for shippers, not least as flexible IBCs are not currently allowed for PG I substances.

The joint paper offered a number of observations. Firstly, the use of flexible IBCs for this product is preferable to the use of smaller packagings or bags, as these alternatives would potentially expose workers to the inhalation hazard. Secondly, recent tests on a new 13H3 flexible IBC, carried out in Belgium have shown that they meet the additional test requirements for PG I. Further, if this classification, which stems from GHS, were to be extended to other fine powders, it would raise a barrier to the use of flexible IBCs for a wide range of minerals and other products in large volumes, thus impeding the movement of goods which have no other high-consequence hazards.

The Sub-committee welcomed the paper, recommending that the appropriate

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classification of the substance in its various forms should be the first step, following which the transport conditions and packaging requirements could be defined. RPMASA led informal discussions during the meeting and it was agreed that further discussions will take place through an intersessional informal correspondence group.

Limited and excepted quantities In an informal document, Canada reported on some work it had been doing to look at the assignment of limited quantity (LQ) and excepted quantity (EQ) values for a number of UN entries. A comparative table of maximum quantities, listed by Class/Division and Packing Group, appears in the Guiding Principles for the Development of the UN Model Regulations but, in practice, Canada said, it does not seem that these principles are applied consistently. For instance, it showed a number of UN entries for which the LQ limit is 1 litre, but the EQ value is either E2 or E0. For instance, in the case of UN Nos 1228, 1261 and 1278 (all Class 3, PG II), the LQ provisions allow their carriage in quantities of up to 1 L per inner packaging, contained in non-UN packagings, and without a limit in the number of packages

transported, whereas they may not be transported under the EQ provisions, despite being in much smaller quantities and in stronger packagings.

The Sub-committee noted the paper and felt that the inconsistencies are there for historical reasons. Rather than change the LQ and EQ values to be more consistent, it felt that a clarification in the Guiding Principles would be more appropriate. Canada invited experts to provide comments so that a proposal can be prepared for the next session.

Living organisms The Secretariat of the Convention on Biological Diversity, on behalf of the Inter-agency Liaison Group on Invasive Alien Species, sought the support of the Sub-committee for the inclusion of environmentally hazardous living organisms in the Model Regulations. Invasive alien species can have devastating effects on biodiversity and they can also cause loss of production in agriculture, forestry and fisheries, and loss of trade opportunities in countries where biological invasions occur, which negatively impacts sustainable development. The paper noted that the UN Model Regulations already cover environmentally hazardous substances that are polluting to the aquatic environment,

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and genetically modified organisms and micro-organisms.

The Sub-Committee noted the request and recommended that discussion of the topic was continued at the next session, inviting experts on biological invasions to join the discussion to provide more detail.

Fire suppression devices The Council on Safe Transport of Hazardous Articles (COSTHA) noted that there are a number of innovative fire suppression safety devices that use an explosive initiator (of Division 1.4) to disperse fine particles and that these are being transported around the world. The US Department of Transportation has approved them under a special permit for transport as a UN 3268 safety device. Nevertheless, the

potential for the fire suppression cloud they generate to obscure firefighting capacity mean that this classification is uncertain. COSTHA wondered if a separate entry could be created to avoid potential confusion.

Several comments were made as to the most appropriate classification of these devices and, following the discussion, COSTHA volunteered to bring forward a revised proposal for a future session.

presence of the explosive initiator and the

with the UN Recommendations, and issues related to the GHS and its relationship with the transport regulations.

Meanwhile, the 56th session of the UN TDG Sub-committee was due to take place in Geneva from 4 to 10 December; a report on that session will be carried in a future issue or issues of HCB.

 THE UN EXPERTS ON THE TRANSPORT OF DANGEROUS GOODS HAVE NOW BEEN INVITED TO RULE ON THE ISSUE OF THE TRANSPORT OF INVASIVE SPECIES (ABOVE)

The second part of this two-part report on the UN TDG Sub-committee’s July 2019 session in next month’s HCB will focus on electric storage systems, the transport of gases, a wide range of miscellaneous proposals for amendment, efforts to harmonise regional and modal regulations

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64 BACK PAGE

NOT OTHERWISE SPECIFIED PLAYING WITH FIRE Regardless of what they would like to believe, humans are – by and large – irrational beings.

They will take fright at the merest mention of ‘chemicals’ but will happily harbour highly hazardous materials under their sink or in the fuel tank of their car. And a failure to recognise those hazards can lead to some scary moments.

You want a for instance? Well, here’s one. In August a woman in Eschborn, Germany was filling her car with fuel but suddenly realised she had put gasoline in her diesel-powered VW Passat. The thing to do in this situation is to call breakdown assistance but, fearing the cost, she sought an alternative solution.

A young man was happy to help, so they pushed the car away from the fuel pump towards the vacuum, normally used for cleaning up the inside of cars. In this instance, they used the vacuum to suck the gasoline out of the fuel tank. As might be expected, it did not take long for a fire to break out, which burned the young man’s hands, destroyed the vacuum itself and badly damaged the car. Luckily the blaze did not spread to the fuel station.

However, the woman was left with a bill of around €30,000, and an unusable vehicle.

Fire crews were alerted to a house on fire and, arriving rapidly, found one end of the garage in flames. They had to take great care to avoid collapsing the whole structure. The Bellingham Herald, which reported the incident, did not mention the state of the man after the fire, though it noted that the car was destroyed.

DRILLER KILLER She is not alone, though. In October, near Lynden in Washington state, US, a man had

PUT THAT LIGHT OUT When fuelling our vehicles, we are normally surrounded by signs warning against using mobile phones on the forecourt or the use of naked flames and cigarettes. We should observe these signs as being caught up in a gasoline-fuelled fire is no joke. However, we had to laugh when we saw CCTV footage of an incident in the city of Tianmen in Hubei province, China in August.

A man was trying to fill his car; clearly somewhat the worse for drink, he was doing so bare-chested. Also, unable to produce ID, which is required in some Chinese cities, he was refused service by the attendant.

As drunks go, the man was somewhat stubborn and refused to leave the premises.

Not only that, but he decided to light a cigarette.

The female attendant warned him several times not to do so but he sparked up anyway. And, left with little choice, she decided the best course of action would be to put the cigarette out herself. This she

another uncomfortable incident with a fuel tank. In this incident, he was trying to siphon gasoline from the tank of a brokendown car in his garage. Clearly not the sharpest tool in the box, he decided that the best way to get at the juice would be to drill into the tank.

achieved by spraying the drunk in the face with a fire extinguisher, which not only eliminated the smoking hazard but also left the miscreant sufficiently disorientated that the police were able to easily arrest him.

He was later charged with endangering public safety.

HCB MONTHLY | DECEMBER 2019

ADVERTISERS INDEX Cameon Chemical Express

49 FC, IFC

COSTHA

02

Fort Vale

15

Freight Merchandising Services

56

HCB TV IATA Labeline

IBC OBC 59, 61, 63

NTtank

06

TT Club

56